On December 31, 2021, Burton, Inc. leased machinery with a fair value of $1,575,000 from...
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On December 31, 2021, Burton, Inc. leased machinery with a fair value of $1,575,000 from Cey Rentals Co. The agreement is a six-year noncancelable lease requiring annual payments of $300,000 beginning December 31, 2021. The lease is appropriately accounted for by Burton as a finance lease. Burtons incremental borrowing rate is 11%. Burton knows the interest rate implicit in the lease payments is 10%. In its December 31, 2021 balance sheet, Burton should report a lease liability of a. $1,137,240. b. $1,275,000. c. $1,408,770. d. $1,437,240. Show work each step
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