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What is the lessees balance sheet account

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Problem

A lease requires the lessee to make just one payment of $1 million, on the last day of the lease, which is 12/31/x4. The lease term is 4 years (begins 1/1/x1). The lease is accounted for as an operating lease. Relative to the lease, what is the lessee's balance sheet account and its balance on 12/31/x2 after all JEs have been recorded?

Reference no: EM131901752

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