Robin least a machine from Reddy leasing. Elyssa requires 10 annual payment of $10,000 beginning immediately. The lease contract specifies the right implicit in the lease of 7% in a purchase option of $12,000 at the end of the 10th year, even though I’m in the machines estimated value on the date is $20,000. Robin is reasonably certain to exercise the purchase option. What a match and Robin record as a lease liability at least commencement?

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When Robin leases a machine from Reddy Leasing they need to record a lease liability on their books ... View the full answer