Rand Medical manufactures lithotripters. LIthotripsy uses shock waves instead of surgery to eliminate kidney stones....
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Rand Medical manufactures lithotripters. LIthotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $2,020,000 and leased it to Mid-South Urologists Group, Inc. on January 1. 2021. (EV of \$1. PV of\$1. EVA of \$1, PVA of \$1. EVAD of \$1 and PVAD of S1) (Use oppropriate factor(s) from the tables provided.) Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physiclans' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entrles are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.7 million. Prepare appropriate enties for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below
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