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1.On March 31, 2013, Southwest Gas leased equipment from a supplier and agreed to pay $200,000 annually for 20 years beginning March 31, 2014. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $2,293,984 lease liability.Required:Determine the interest rate implicit in the lease agreement.
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Lance H. and Wanda B, Dean are married. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time by a law firm as a paralegal.
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