Essay
Weta Corporation leases photocopy equipment from Digital Corporation at $24,000 per year for 3 years beginning January 1,2020.The payments are to be made each December 31,beginning in 2020.The lease agreement meets the criteria for a finance lease.The equipment is to be depreciated straight-line over three years.Assuming a 6% effective interest rate,record the entry on January 1,2020,the adjusting entry for depreciation on December 31,2020,and the entry to record the first lease payment.Round all values to the nearest dollar.
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