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On January 1, 19A, Lessor rents a machine to Lessee for 3 years. Both the cost and the selling price are $30,000. The salvage value at the end of the 3-year period is $5,000, which is unguaranteed by Lessee. The interest rate, which is known to both parties, is 10%, and the lease meets all the conditions required to be a capital lease.
(a) Calculate the annual rental.
(b) Determine the amount to be capitalized by Lessor.
(c) Determine the amount to be capitalized by Lessee.
below you will find selected information in millions from coca-cola co.s 2012 annual reportincome taxes
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