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The seller of the airplane in question #1 was RustyBucket Air Mfg, Inc. RustyBucket manufactured the plane at a cost of $4.5 million.

3. The seller of the airplane in question #1 was RustyBucket Air Mfg, Inc. RustyBucket manufactured the plane at a cost of $4.5 million. The plane automatically transfers to ConAir at the end of the lease. Show the following journal entries:

(a) The initial sale of the plane.

(b) The receipt of the final payment of the lease in year 10

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(a) The initial sale of the plane. Debit Net Investment in Lease $(Sales price) Credit Sales $(Sales... View the full answer

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