Question: In an operating lease, 9 year term at 8 % return with annual payments of $ 2 6 , 0 0 0 beginning 1 -

In an operating lease, 9 year term at 8% return with annual payments of $26,000 beginning 1-1 year one and then on 12-31 thereafter. The cost of the equipment for the lessor was $189,000. How does the lessor record the lease and subsequent payments and what are the effects on the year end financial statements?

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