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Accounting Assignment | Custom Assignment Help

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October 19th, 2019

Bryson Inc. (lessor) entered into a contract with Tessier Corp. (lessee) regarding a 5-year lease for office space in Bell City. Due to the relatively high vacancy rate for office space in Bell City, Tessier Corp. was anticipating favourable lease terms. The final agreement was based on current market leasing values of approximately $80,000/month. Based on the high vacancy rate, Tessier agreed to pay the $80,000/year in years 2, 3, 4 & 5. No payment was required in Year 1.Custom Assignment Help

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       I.            What type of lease is Tessier Corp. entering into? Explain your answer. (5 marks)

    II.            Prepare Tessier Corp.’s office space lease journal entries for Year 1, Year 2, Year 3, Year 4 and Year 5. (15 marks)Get accounting  assignment homework help today

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