What is the amount of gordon ltd annual depreciation expense

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Problem 1: Gordon Ltd leases a mining helicopter from Freeman Ltd. The right to use asset recorded by Gordon Ltd is valued at $329 133. The lease payment is $100,000 for three years. Lease payments are to be made annually and in advance. Gordon Ltd guarantees the $50 000 residual value of the helicopter. Both Gordon Ltd and Freeman Ltd have the same interest rate implicit in the lease as 5%. What is the amount of Gordon Ltd's annual depreciation expense?

Reference no: EM132982386

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