Kleckner Corporation recorded a capital lease at $200,000 on January 1, 2008. The interest rate is 12%.

Question:

Kleckner recorded a capital lease at $200,000 on January 1, 2008. The interest rate is 12%. Kleckner made the first lease payment of $35,947 on January 1, 2008. The lease requires eight annual payments. The equipment has a useful life of 8 years with no . Prepare Kleckner Corporation’s December 31, 2008, adjusting entries.

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