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What is the amount of the annual lease payment

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Question - On January 1, Year 1, A Company leased some non-specialized equipment to X on non-cancelable lease. The equipment has a six-year useful life, but the lease has a five-year term. The equipment has a cost to the lessor of $200,000, which is also its fair value. Payments are made annually with the first payment due at the beginning of the lease. The implicit rate on the lease is 10% which is known to the lessee. The lessee's incremental borrowing rate what is the amount of the annual lease payment?

Reference no: EM133053915

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