Business, 26.02.2021 06:00, clydeben4543

Rumsfeld Corporation leased a machine on December 31, 2021, for a three-year period. The lease agreement calls for annual payments in the amount of $16,000 on December 31 of each year beginning on December 31, 2021. Rumsfeld has the option to purchase the machine on December 31, 2024, for $20,000 when its fair value is expected to be $40,000. The machine's estimated useful life is expected to be five years with no residual value. The appropriate interest rate for this lease is 12%. Prepare the journal entry to record the right of use asset.

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Rumsfeld Corporation leased a machine on December 31, 2021, for a three-year period. The lease agree...