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This is a lecture from open tuition discussing the accounting treatment of a five-year lease of machinery. The lecture emphasizes the recognition of a right of use asset and lease liability without any exemptions. The lease has a useful life of six years with annual rental payments of $5,000. The first payment was made on the first of January 2015. The lecture focuses on how the lease will be accounted for in the financial statements over the five-year period.
