Weta Corporation leases photocopy equipment from Digital Corporation at $24,000 per year for 3 years beginning January 1,2020.The payments are to be made each December 31,beginning in 2020.The lease agreement meets the criteria for a finance lease.The equipment is to be depreciated straight-line over three years.Assuming a 6% effective interest rate,record the entry on January 1,2020,the adjusting entry for depreciation on December 31,2020,and the entry to record the first lease payment.Round all values to the nearest dollar.

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The Answer of Weta Corporation leases photocopy equipment from Digital Corporation at $24,000 per year for 3 years beginning January 1,2020.The payments are to be made each December 31,beginning in 2020.The lease agreement meets the criteria for a finance lease.The equipment is to be depreciated straight-line over three years.Assuming a 6% effective interest rate,record the entry on January 1,2020,the adjusting entry for depreciation on December 31,2020,and the entry to record the first lease payment.Round all values to the nearest dollar.

Weta Corporation Leases Photocopy Equipment from Digital Corporation at $24,000