Chang Corp. leases new manufacturing equipment from Bracer Construction Inc. The present value of the lease payments

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Chang Corp. leases new manufacturing equipment from Bracer Construction Inc. The present value of the lease payments is $300,000 and the fair value of the equipment is $320,000. Both companies prepare their financial statements under IFRS.

a. Which company is the lessor and which company is the lessee?

b. Prepare the journal entry to record the lease for the lessee.

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

Question Posted: Jan 26, 2023 07:03 AM

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Chang Corp. leases new manufacturing equipment from Bracer Construction Inc. The present value of the lease payments

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