Question: (4 points) M leased a machine on 01-01-19. The machines estimated useful life is 4 years. The non-cancelable lease required M to make 3 monthly
- (4 points) M leased a machine on 01-01-19. The machines estimated useful life is 4 years. The non-cancelable lease required M to make 3 monthly lease payments of $25,000 every month with the first lease payment occurring on 01-01-19. Ms incremental borrowing rate is 3%. At the end of the lease, M will return the machine to the lessor. M uses the straight-line depreciation (amortization) method (no residual value). M prepares AJEs every month as of the end of each month. Prepare the lease-related entries M should make on:
- 01-01-19
- 01-31-19
- 02-28-19
- 03-31-19
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