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Question - M leased a machine on 11-01-19. The machine's estimated useful life is 3 years. The non-cancelable lease required M to make 3 monthly lease payments of $10,000 every month with the first lease payment occurring on 12-01-19. M's incremental borrowing rate is 3%. At the end of the lease, M will return the machine to the lessor. M uses the straight-line depreciation method (no residual value). M only prepares AJEs every December 31. Prepare the lease-related entries C should make on:
a) 11-01-19
b) 12-01-19
c) 12-31-19
d) 01-01-20
e) 02-01-20
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