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On 1 July 2017, Tedd Ltd leased a large truck from Todd Ltd. The truck had a fair value of $54,000 on 1 July 2017. The lease agreement contained the following provisions:
Required
Question 1: Calculate the present value of lease payments (show all workings).
Question 2: Prepare the lease schedule for the lessee.
Question 3: Prepare the journal entries for the lessee on 1 July 2017.
Question 4: Prepare the journal entries for the lessee on 30 June 2018.
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