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Burt Ltd enters into a non-cancellable B-years lease agreement with Earnie Ltd on 1 July 2023. The lease is for an item of machinery that, at the inception ofthe lease, has a fair value of $1,398,552.
Problem 1: Compute the rate of interest implicit in the lease and calculate the present value of the lease payment
Problem 2: journal entries in burt ltd at the start of the agreement, for the years ending 30 June 2024 and 2025
Problem 3: prepare the portion of the statement of financial position for the years ending 30 June 2024 and 2025, relating to the leased asset and lease liability
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During the year the business recorded $634000 in revenues, $331000 in expenses, and dividends of $57000. Stockholders' equity at the end of the year was
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