Taunton Manufacturing Inc. is a machine shop in Taunton Massachusetts. The firm recently leased a drill press for a 20-year term at payments of $9,000 per year payable at year-end. No residual value was assumed in the lease, which is clearly a financing lease. Taunton can borrow at 8%, and will depreciate the press straight line over 20 years. ,Shortly before the lease became effective Taunton’s balance sheet was as follows:,, Taunton Manufacturing Inc., Balance Sheet, ($000), Current Assets $ 35 Current Liabilities $ 25, Fixed Assets 315 Long Term Debt 95, Total Assets $350 Equity 230, Total Debt & Equity $350,,Answer the following questions working in whole dollars but present balance sheet accounts rounded to the nearest $1,000.,,a. Construct Taunton’s balance sheet showing the capitalized lease and the related lease obligation. ,
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