The Owens Company leased equipment for four years at $50,000 a month, with an option to renew

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The Owens Company leased equipment for four years at $50,000 a month, with an option to renew the lease for six years at $2,000 per month or to purchase the equipment for $25,000 (a price considerably less than the expected fair value) after the initial lease term of four years. How does Owens Company record this transaction?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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