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Ready Car Rental leased a car to Blue Company for three months.
1. Terms of the lease agreement call for monthly payments of $ 1,090, beginning on May 21, 2021. Blue reports using ASPE.
2. On January 1, 2021, InSynch Ltd. entered into an agreement to lease 60 computers from Crane Electronics. The terms of the lease agreement require three annual payments of $43,737 (including 5.5% interest), beginning on December 31, 2021. The present value of the three payments is $ 101,000 and the market value of the computers is $ 103,000. InSynch Ltd. reports using IFRS.
Problem 1: Prepare the journal entry, if any, that each company must make to record the lease agreement.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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