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Business, 15.04.2021 17:30 ethan0

On October 1, 2018, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $500,000, beginning Oct 1, 2019. Similar transactions have carried an 11% interest rate. Sonoma Company expects the residual value at Oct. 1, 2023 to be $30,000. Negotiations led to Napa Inc. guaranteeing a $50,000 residual value. The right-of-use asset would be recorded at:

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On October 1, 2018, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal an...
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