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Exercise 21A-17 a-c On January 1, 2017, Kingbird Co. leased a building to Blossom Inc....

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Exercise 21A-17 a-c On January 1, 2017, Kingbird Co. leased a building to Blossom Inc. The relevant information related to the lease is as follows 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $3,800,000 (unguaranteed) 2. The leased building has a cost of $4,300,000 and was purchased for cash on January 1, 2017. 3. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 4. Lease payments are $275,000 per year and are made at the beginning of the year. 5. Blossom has an incremental borrowing rate of 5%, and the rate implicit in the lease is unknown to Blossom. 6 Both the lessor and the lessee are on a calendar-year basis. 2. The lesed buildng

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