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Business, 02.11.2019 05:31 harmonytaylor13

At january 1, 2019, alpha leased restaurant equipment from spring corporation under a six-year lease agreement in a finance lease. the lease agreement specifies annual payments of $20,000 beginning january 1, 2019, the beginning of the lease, and at each december 31 thereafter through 2023. the equipment was acquired recently by spring at a cost of $120,000 and was expected to have a useful life of eight years with no salvage value at the end of its life. spring seeks a 5% return on its lease investments. the total decrease in earnings (pretax) in alpha december 31, 2019, income statement would be:

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