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Always Distributing Entered into a Leasing Agreement with R

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Always Distributing entered into a leasing agreement with R & D Rental.The lease qualifies as a capital lease and calls for payments of $5,000 for 5 years with the first payment being made on January 1,2014,and subsequent payments being made on December 31 of each year.Always's incremental borrowing rate is 12 percent.
Prepare a schedule amortizing Always's lease obligation.


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