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Unformatted text preview: cash), Income Tax Expense, and the Deferred Tax Asset or Liability. 3. (2 points) On January 1, 2008, L Company leases a computer. The lease calls for 2 lease payments: $110 on December 31, 2008 and $121 on December 31, 2009. The title of the computer will remain with the lessor. There is no bargain purchase option, and the estimated life of the computer is 3 years. At the lease inception, the fair market value of the computer is $220. The appropriate discount rate is 10%. Provide all journal entries related to the lease. (Only annual financial statements are to be prepared.)...
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