Question: On January 1 , 2 0 2 0 , Crane Inc. entered into an agreement to lease equipment from Bramble Corporation. The lease agreement requires

On January 1,2020, Crane Inc. entered into an agreement to lease equipment from Bramble Corporation. The lease agreement
requires five annual rental payments of $100,000 beginning December 31,2020. The present value of the rental payments is
$380,130.
Prepare the entry to record the lease agreement on the books of Crane Inc. on January 1,2020.(Credit account titles are automatically
indented when the amount is entered. Do not indent manually. List all debit entry before credit entry.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
Lease Liability
On January 1,2020, Crane Inc. entered into an agreement to lease

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