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Prophecy Signs LOI to Lease Mining Equipment from Oroscons ...The LOI will expire without any effect to either party if a final mining equipment lease contract is not signed between them on or before March 1, 2017. Based on Prophecy's estimation, the equipment to be leased from Orosons will enable the Paca project to be mined at a minimum production rate of 200 tonnes of ore per day.
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Lease AccountingStep 3: Journal entries. January 1, 2017. DR Equipment 164,995. CR Cash 28,500. CR Lease Liability 136,495 . The equipment account is debited by the present value of the minimum lease payments and the lease liability account is the difference between the value of the equipment and cash paid at the beginning of the year.
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