Essay
ML leased a computer to LH on January 1, 2014.The lease was a five year fixed, non-cancellable agreement.The payments were finalized at $2,380 per year with the first payment on January 1, 2014 and ML paid $9,500 for the computer.Carrying value is equal to fair value.The lease is deemed a finance lease.Based on the above information, what type of lease is this for the lessor.Prepare the journal entries for at the inception of the lease using the gross method.
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(a)this is a financi...View Answer
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