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*Ex. 21-102—Sale-leaseback.
On January 1, 2008, Owings Co. sells machinery to Aber Corp. at its fair value of $480,000 and leases it back. The machinery had a carrying value of $420,000, the lease is for 10 years and the implicit rate is 10%. The lease payments of $71,000 start on January 1, 2008. Owings uses straight-line depreciation and there is no residual value.

(a)     Prepare all of Owings's entries for 2008.
(b)     Prepare all of Aber's entries for 2008.


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