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Question - Spokane Company leased some equipment from another company on January 1, 2010, for a four-year period. Payments of $18,000 were due each December 31. The lease qualified as a capital lease. Assets were depreciated straight-line over the life of the lease. The appropriate interest rate to use was 10%.
Required: Prepare all journal entries for 2010 on Spokane's books (round to nearest whole number).
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