Prepare the journal entry


ABC Inc. entered into a four-year lease of equipment for $9,000 a year, payable at the beginning of each year. The lessor required ABC to guarantee that the equipment would be worth $6,000 at the end of the lease. If ABC's incremental borrowing rate is 14 percent and the lessor's implicit interest rate, which Rosemary is aware of, is 10 percent, ABC should record an asset on its books of what amount? Prepare the journal entry.

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Accounting Basics: Prepare the journal entry
Reference No:- TGS0515031

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