The company leases equipment with a useful life of four years and no salvage value....
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Accounting
The company leases equipment with a useful life of four years and no salvage value. There is a three-year agreement that cannot be canceled, with annual payments of $42,000. The payment begins on January 1st. The lease is accounted for by the company with a borrowing rate of 12.5% and an implicit rate of 10%. What amount of expense should report the company at the end of the year?
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