What is the entry to record lease on books

Reference no: EM13159766

Hall, Inc. agrees to lease equipment from White Inc. for 10 years for $50,000 at the end of each year. The equipment has a fair value of $350,000 and an estimated useful life of 10 years. The lease includes a guaranteed residual value of $20,000. In addition to the lease payments, Hall will pay $10,000 per year for a maintenance agreement. Hall can finance this lease with its bank at a 12% rate. The lessor's implicit interest rate is 10%. Use the present value factors from near the end of your text to perform any necessary present value calculations. What is the entry to record this lease on Hall's books?

Reference no: EM13159766

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What is the entry to record lease on books : UUse the present value factors from near the end of your text to perform any necessary present value calculations. What is the entry to record this lease on Hall's books?

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