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On January 1, 2020, Funcadia (lessee) leased 100 golf carts from the manufacturer, Takima Inc. (lessor) for a 7-year period. Pertinent information follows:
Required:
Problem a. Calculate the present value of the lease payments.
Problem b. Prepare the amortization table.
Problem c. Classify the lease agreement.
Problem d. Prepare the journal entry(ies) for the lessor and the lessee for the 2020 fiscal year related to the lease arrangement.
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