Geiberger
Corporation manufactures replicators. On January 1, 2012, it leased to
Althaus Company a replicator that had cost $110,000 to manufacture. The
lease agreement covers the 5-year useful life of the replicator and
requires 5 equal annual rentals of $40,800 each. An interest rate of 12%
is implicit in the lease agreement. Collectibility of the rentals is
reasonably assured, and there are no important uncertainties concerning
costs. Prepare Geiberger\'s January 1, 2012, journal entries. (Round
your answer to the nearest dollar eg 58,591).
