Wildhorse Corporation enters into a 5-year lease of equipment on December 31,2024, which requires 5...
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Wildhorse Corporation enters into a year lease of equipment on December which requires annual payments of $ each, beginning December In addition, Wildhorse guarantees the lessor a residual value of $ at the end of the lease. However, Wildhorse believes it is probable that the expected residual value at the end of the lease term will be $ The equipment has a useful life of years. Prepare Wildhorses' December journal entries assuming the implicit rate of the lease is and this is known to Wildhorse.
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