Waynes Clown College (C3), leases 10 mini clown cars from P3 on January 1, 2020. The pertinent

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Wayne’s Clown College (C3), leases 10 mini clown cars from P3 on January 1, 2020. The pertinent data are:

• P3 purchased the clown cars in 2019 for $160,000 (the purchase was properly recorded as inventory)

• The lease is for an 8-year period. The economic life of the clown cars is 10 years and no residual value.

• Annual lease payments are $35,004 and will be paid to P3 each January 1, starting at the inception of the lease. The rate implicit in the lease is 6%. Record the Journal Entries for 2020.

Related Book For answer-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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Posted Date: Aug 22, 2021 11:25 PM

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Waynes Clown College (C3), leases 10 mini clown cars from P3 on January 1, 2020. The pertinent

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ANSWER Calculation of Value of Lease Liability Annual Payment PV... View the full answer

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