Huebner Corporation leases new equipment for 10 years on December 31, 2020. The present value of the

Question:

Huebner Corporation leases new equipment for 10 years on December 31, 2020. The present value of the lease payments is $192,000. After recording this lease, Huebner has assets of $1,800,000, liabilities of $1,100,000, and stockholders’ equity of $700,000.

(a) Prepare the entry to record the lease,

(b) Compute and discuss the debt to assets ratio at year-end.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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