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The lessor is selling the right to use the asset

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1.In the situation described in BE 15-17, assume the asset being leased cost the lessor $125,000 to produce and its fair value is $150,000. Determine the price at which the lessor is selling the right to use the asset (present value of the lease payments). What will be the balances in the balance sheet accounts related to the lease at the end of the first year (ignore taxes)?

Reference no: EM13880470

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