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Help Save & Submit ABC Company leased equipment to Best Corporation under a lease agreement that qualifies as a finance lease
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Answer #1

Answer:

Annual amortization=$12,310

Working notes for the above answer is as under

cost of the asset is =$126,000

salvage value=$,900

estimated life=10 years

Depreciation

= ( cost of asset - salvage value)/ estimated life

=(126,000 - 2900)/10

= 123100 / 10

=$12,310

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