Moving Co. leases a moving truck for five years from Trucks…
Moving Co. leases a moving truck for five years from Trucks n More. The lease is classified correctly as an operating type lease. The present value of the lease payments is $223,255 using an 6% interest rate. The lease payments are $50,000 each year made at the beginning of the year. The first of five payments is made on January 1, 2015 at the inception of the lease. The journal entry to recognize lease expense at the end of 2015 will include which of the following?
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