Make journal entries for year one assuming

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Reference no: EM13789230

On 1/1/14 we sign a lease: Term is 5 years and is no cancellable with Payments of $23,981.59 made at the beginning of each year. The FMV of leased asset is $100,000 and has a economic life 5 years. No renewal option. Ownership reverts to lessor at end of lease; Lessee uses straight-line method to depreciate assets. Lessor set payments to earn 10% rate of return. Lessee knows this.

Required: make journal entries for year 1 assuming the following

a) There is no residual value.

Reference no: EM13789230

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Make journal entries for year one assuming : On 1/1/14 we sign a lease: Term is 5 years and is no cancellable with Payments of $23,981.59 made at the beginning of each year. The FMV of leased asset is $100,000 and has a economic life 5 years. No renewal option.

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