The City of Rochester signed a 30-year agreement with East Coast Real Estate, Inc. to lease a
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Required
a. Using the criteria presented in this chapter, determine whether the city should consider this lease agreement a capital lease. Explain your decision.
b. Provide the journal entries the city should make for both the capital projects fund and governmental activities at the government-wide level to record the lease at the date of inception.
c. Which financial statement(s) prepared at the end of the first year would show both the asset and the liability related to this capital lease?
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Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078025822
17th edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
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