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On January1, 2016, Holbrook company leased a building under a three year operating lease. The annual...

On January1, 2016, Holbrook company leased a building under a three year operating lease. The annual rental payments are $40,000 on January 1, 2016. $30,000 on January 1, 2017. and $20,000 on January 1, 2018.

-Prepare the appropriate journal entries for Holbrook company from the inception of the lease through the end of 2018.

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