(This problem requires use of present value tables.)
Cambridge Company leased equipment from Amherst Company on January 1, 2014. Information about the lease is as follows: 
Required:
a.Compute the present value of the minimum lease payments.
b.Classify the lease from the viewpoint of Cambridge Company, giving reasons.
c.Prepare Cambridge's journal entry or entries for the lease for 2014.
Definitions:
Heart Disease
A range of conditions that affect the heart, including blood vessel diseases, heart rhythm problems, and heart defects among others.
Canadian Families
The diverse familial structures and relationships found within Canada, influenced by cultural, social, and legal factors.
Legally Married
A state of being in a marriage that is recognized and sanctioned by law, involving a formal agreement entered into by two individuals that is legally binding.
Family Violence
A pattern of abusive behaviors in family relationships, including physical, sexual, psychological abuse, or neglect.
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