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Question
1. Five payments of $26,379.74 (a 9% implicit rate) due at the end each year.2. The fair value of the tractor is $100,000.
3. The lease is nonrenewable and the tractor reverts to Star at the end of the lease term.
4. The tractor has a six-year economic life.
5. Hatfield has an excellent credit rating.
6. Star offers no warranty on the tractor other than the manufacturer's two-year warranty that is handled directly with the manufacturer.
With which one of the following entries will Hatfield prepare to record the payment on December 31, 2011?
A. Option a
B. Option b
C. Option c
D. Option d
Answer
This answer is hidden. It contains 187 characters.
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