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Montana Company signs a five-year capital lease with Elway Company for office equipment. The yearly lease payment is $20,000, and the interest rate is 8%.
1. Compute the current value of Montana's five-year lease payments.
2. Prepare the journal entry to record Montana's capital lease at its inception.
The company selected a suitable site and commissioned a survey and valuation report, for which the fee was £1,500. On the basis of the report the site was acquired for £90,000. Sol
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