Business, 04.10.2019 23:20 brimccauley6518
What is the effective rate of interest implicit in the agreement? 2-4. prepare the lessee’s journal entries at the beginning of the lease, the first lease payment at december 31, 2018 and the second lease payment at december 31, 2019. 5. suppose the fair value of the machine and the lessor’s implicit rate were unknown at the time of the lease, but that the lessee’s incremental borrowing rate of interest for notes of similar risk was 12%. prepare the lessee’s entry at the beginning of the lease.
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What is the effective rate of interest implicit in the agreement? 2-4. prepare the lessee’s journal...
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