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On January 1, Lorraine, Inc., entered into a lease contract. The lease contract was a ten-year lease for a computer with $16,000 annual lease payments due at the end of each year. Lorraine took possession of the computer on January 1. The present value of the lease payments under the lease contract is $117,761. The lease contract is a finance lease. Prepare the journal entry for this lease on January 1.
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On January 1, Lorraine, Inc., entered into a lease contract. The lease contract was a ten-year lease...
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