Pharoah Leasing Company agrees to lease equipment to Novak Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $502,000, and the fair value of the asset on January 1, 2020, is $739,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000. Novak estimates that the expected residual value at the end of the lease term will be 45,000. Novak amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Pharoah desires a 10% rate of return on its investments. Novak's incremental borrowing rate is 11%, and the lessor's implicitrate is unknown.
1. Discuss the nature of this lease for both the lessee and the lessor.
2. Calculate the amount of the annual rental payment required.
3. Compute the value of the lease liability to the lessee.
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Suppose Novak expects the residual value at the end of this lease term to be $40,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement.
Answers
Answer:
1. Novak Corporation is the lessee and this is a Capital Lease for it. Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it.
2. Annual rental payment required = $133,683
3. Lease Liability to the lessee = $720,909
4. See the attached excel file.
5. See the attached excel file.
Explanation:
1. Discuss the nature of this lease for both the lessee and the lessor.
Novak Corporation is the lessee and this is a Capital Lease for it. The reason this is a capital lease to Novak Corporation is that the lease of the equipment will be treated as an asset in the books of accounts of Novak Corporation.
Lease for Pharoah Leasing Company is the lessor and this is an Operating Lease for it. The reason this is an operating lease to Pharoah Leasing Company is that the ownership of the asset is not transferred by Pharoah Leasing Company to Novak Corporation and the useful life of the asset will remains after the lease term expires.
2. Calculate the amount of the annual rental payment required.
Note: See L in the attached excel file for the calculation of the amount of the annual rental payment required.
From the attached excel file, we have:
Annual rental payment required = $133,683
3. Compute the value of the lease liability to the lessee.
Note: See O in the attached excel file for the computation of the value of the lease liability to the lessee.
From the attached excel file, we have:
Lease Liability to the lessee = $720,909
4. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.
5. Prepare the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Note: See the attached excel file for the journal entries Pharoah would make in 2020 and 2021 related to the lease arrangement.
Related Questions
yall have anything to cure depression? lmk pls ._.
Answers
Answer:
Anti-depressants :))))))))
they make u HIGH on happiness :DDDDDDDDDDDDDDDDDD
Answer:
Morningggggggg
Explanation:
When you want to save time recording progress and don't mind slightly less accuracy, which progress reporting approach would you choose?
Answers
The complete question reads;
When you want to save time recording progress and don't mind slightly less accuracy, which progress reporting approach would you choose?
a. tracking work and remaining work at the task level
b. tracking % complete at the task level
c. tracking work at the assignment level
d. tracking % complete at the assignment level
Answer:
d. tracking % complete at the assignment level
Explanation:
Remember, tracking the percent of completion of the assignment level would be indicating an overview of the entire assignment which may be slightly less accurate compared to the other listed options.
Thus, to save time recording progress this is the best viable option.
what is the decision of the Michael J. French v. American Airlines 2009 U.S. Dist. LEXIS 48654 (U.S. District Court Utah Central Division) case
Answers
The case was heard in the US District Court for the Central Division of Utah. The court ruled in favor of American Airlines, stating that the airline had not violated the ADA by requiring the passenger's service animal to be in a kennel during the flight. The court noted that the airline had provided alternative accommodations for the passenger, including an earlier flight that would allow the passenger to have his service animal with him outside of a kennel. The court also stated that the airline's safety concerns were legitimate and that the airline had the right to establish policies to ensure the safety of its passengers.
Overall, the decision in the Michael J. French v. American Airlines case was in favor of American Airlines, stating that the airline had not violated the Americans with Disabilities Act by requiring the passenger's service animal to be in a kennel during the flight.
Answer:
for American Airlines
Explanation:
Russell Company collected cash of $780 immediately after providing consulting services to a client. Which of the following general journal entries will Russell Company make to record this transaction?
Answers
The general journal entries that Russell Company will make to record this transaction is: Debit Cash, $780; credit Accounts Receivable $780.
Journal entries:Since the company receive cash of the amount of $780 after rendering service to their client. The appropriate journal entry to record the transaction is:
Russell Company journal entry
Debit Cash $780
Credit Accounts Receivable $780
(To record account receivable)
Inconclusion the general journal entries that Russell Company will make to record this transaction is: Debit Cash, $780; credit Accounts Receivable $780.
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Amber’s starting salary for her new job will be $35,500 a year. How much will she pay to the Social Security system for her first year assuming total FICA withholdings of 7.65%?
Answers
Answer:
I dont know the answer but I want whatever job she has
Do you agree with the EU's threat to use trade agreements as a weapon in the fight against low-cost subcontracting? If governments were to regulate the number of subcontractors that can be involved in the production of a product, do you believe businesses that outsource their work would be more prone to respond ethically to catastrophes and to working conditions in general? •
Answers
Trade agreement is known to influence companies in different ways. I agree with EU’s threat to use trade agreements as a weapon in the fight against low-cost subcontracting.
Businesses that outsource their work would not be more prone to respond ethically to catastrophes because Outsourcing by firms mount pressure on the business to monitor and maintain high-quality standards.This can be a way to handling the issue with the developing countries. Tariffs on trade was once used by the European Union.
I believe that trade agreements are good tools that can fight against poor labor conditions that is prevalent developing nations.
The regulation used can make firms to have a more concentrated and vertical supply chain that is manageable and accountable.
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example of business proposal
Answers
use the deviations from part (a) to calculate the variance (in (nanograms/gram)2) and standard deviation (in nanograms/gram) for this data set. (round the standard deviation to two decimal places.)
Answers
The answers are:
The variance is 1325.6The Standard deviation is 36.41How to calculate Standard deviation?A measure of a data set's variance from the mean is referred to as "standard deviation." While a high standard deviation suggests that the numbers are more scattered, a low standard deviation suggests that the data are clustered around the mean. The average degree of variability in your data collection is represented by the standard deviation. It reveals the average deviation of each number from the mean.
Calculate variance and standard deviation using these deviations from mean.
Variance = \(\frac{1}{n} \sum(x_{i}-\bar{x})^2\)
= \(\frac{1}{5} \sum_{i=1} ^5(x_{i}-\bar{x})^2\)
= 1/5[47^2+8^2+35^2+23^2+51^2]
= 6628/5
= 1325.6
Variance = 1325.6
Standard deviation = square root variance
= \(\sqrt{variance}\)
= \(\sqrt{1325.6}\)
= 36.41
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Rest of the question is,
variance (nanograms/gram)2standard deviation nanograms/gram
Identify what can happen to an entrepreneur who is personally liable for their business in cases of legal, financial, or other business problems.
Answers
Answer: an entrepreneur who is liable for their business can have major problems for a business like earning less money they can still have a business but it will be hard to have co workers in the business
Explanation:
Do you disagree that “leaders are born, not made”?
Answers
Answer: I disagree
Explanation: everyone was born but not everyone is a leader. anyone can be born to do something but it is up to the person who they will become
what happens to the supply and demand when price level decreases ?
Answers
Answer:
If the price decreases then the supply in demand increases.
Explanation:
The reason behind this is to do with how the law of demand works.
heres a freebe to get more points. whats ur fav disney movie and whos ur fav disney princess. why?
Answers
Answer:
fav Disney movie: coco fav Disney princess: Tiana
Explanation:
i dont know why I just like them and they dont have a lot of black princesses so yeah
Answer:
belle and beauty and the beast
Explanation:
because shes not judgmental and can be her own person
Lizzy’s is a retail clothing store, specializing in formal wear for weddings. They purchase their clothing for resale from specialty distributors and manufacturers. Recently the owners of Lizzy’s have noted an increased interest in costume jewelry and fashion accessories among their clientele. If the owners of Lizzy’s decide to expand their business to include these products, what cost data would they need to collect and analyze prior to expanding the business?
Answers
Answer:
their net profit, and demand
Explanation:
they cannot produce of buy ore things to sell if they do not have the funds to buy it
3. Explain what happens to a business's break-even point when their selling price changes
(higher or lower).
Answers
Changes in sales have no effect on the break-even point. It continues to be the point at which revenues fully offset fixed and recurring expenses without generating a profit or loss. If sales go over the break-even mark, a corporation makes money; if they fall below, they lose money.
Why does the break-even threshold fluctuate when the mix of sales changes?The break-even point increases if consumer demand changes and they buy more low-margin goods. In contrast, the break-even threshold decreases when more high-margin products are bought by buyers. In fact, depending on the sales mix, the break-even point can shift even if overall sales dollars stay the same.
Will the break-even threshold drop if the selling price drops?The break-even point in units typically decreases as the selling price per unit increases. The break-even threshold will therefore increase as the selling price per unit decreases. Lessening sales would result in lower contribution margins, which would in turn result in less fixed expenses being covered by sales.
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monotheism
ojkhhhohiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000-
Answers
Answer:
oooooooooooooooooiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiicxvbzshxgsxhjzxhsjhsjxshyxhs
Explanation:
Alfred E. Old and Beulah A. Crane, each age 42, married on September 7,2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorce from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2019. In addition, in January 2019, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2019 is $150,000. He is an executive working for Cherry.Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society.Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives salary of $42,000 in 2019. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. They received $1,900 refund on their 2018 state income taxes. They claimed the standard deduction on their 2018 Federal income tax return. Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2019. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign. Compute the Old's net tax payable (or refund due) for 2019. Suggested software: ProConnect Tax Online
Answers
To compute the Olds' net tax payable (or refund due) for 2019, we need to gather all the relevant information and calculate their taxable income, apply the appropriate tax rates, deductions, and credits. Since the tax calculation involves various factors and tax laws, it would be best to use tax software such as ProConnect Tax Online or consult with a tax professional. The software will streamline the process and ensure accurate calculations based on the specific tax laws and regulations applicable to the Olds' situation.
As part of your new job at Buzz Building, you join ongoing work to complete construction of a bridge. You are told that a new batch of steel beams have arrived but come from a new vendor. You don't know anything about the specific alloy types, but your colleague says he checked the compositions and the new steel beams are identical in composition to the old steel beams. Based on the identical composition, he concludes that these new beams should have the same mechanical properties and that construction should continue. What would be your response?
a.) You would disagree and say that work should stop until you can confirm exact specifications because a material's properties can depend upon other structural features besides composition.
b.) You would agree because as you learned in MSE 2001, the properties of a material depend solely upon the material's composition.
c.) You would disagree and say that work should stop until you can confirm exact specifications because a material's properties can depend upon the shape and size as well as composition.
d.) You would agree because a material's properties depend solely on composition and are independent of the size or shape of a material.
Answers
You would disagree and say that work should stop until you can confirm exact specifications because a material's properties can depend upon other structural features besides composition.
correct option: a
What is specification?One of the most important components of a product's manufacturing process is the specification, or spec. The content and manufacturing methods of the items we utilise, as well as whether or not they will satisfy the demands of the intended market, are all determined by specifications.
Requirement specifications come in a variety of forms. They include Functional Requirement Specifications (FRS), Performance Requirement Specifications (PRS), Configurations Requirement Specifications (CRF), Business Requirement Specifications (BRS), Reliability Requirement Specifications (RRF), Compatibility Requirement Specifications (CRF), and Software Requirement Specifications (SRS). The most frequent ones are the Business Requirement Specification (BRS), the Software Requirement Specification (SRS), and the Functional Requirement Specification (FRS).
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During 2011, Gum Co. introduced a new product carrying a two- year warranty against defects.
The estimated warranty costs related to dollar sales are 2% within 12 months following the sale and 4% in the second 12 months of the sale.
The sale and actual warranty expenditures for the years ended December 31, 2011, and 2012 are as follows:
Sales Actual warranty expenditures
2011 150,000 2,250
2012 250,000 7,500
Total 400,000 9,750
What amount should Gum report as warranty expense on its 12/31/2012 Income Statement?
Answers
The amount that Gum should report as estimated warranty expense on its December 31, 2012 balance sheet is $14,250.
First step is to calculate the estimated cost related to dollar sales
Estimated cost related to dollar sales=2%+4%
Estimated cost related to dollar sales= 6%
Second step is to calculate the estimated warranty expense that should be reported
Estimated warranty expense =(400,000×6%)-Total of actual warranty expenditures of $9,750
Estimated warranty expense=$24,000-$9,750
Estimated warranty expense=$14,250
Inconclusion the amount that Gum should report as estimated warranty expense on its December 31, 2012 balance sheet is $14,250.
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Producers use market research in order to do what?
A. Make better investment decisions
B. Drive other companies out of business
C. Keep the costs of production low
D. Find out what consumers want to buy
Answers
Answer: Find out what consumers want to buy.
Explanation: a.p.e.x
Producers use market research in order to know what the consumers want to buy
Who are producers?The goods or products which are made to sale for consumers by an individual or company are known as producers.
What is market research?The research which is made to know the consumers needs and preferences to further make the better and improved product or service.
Who are consumers?Consumers are group of people or an individual who purchases goods or use the services provided by producers.
Hence, option D is the correct answer
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If your apartment catches on fire and you have renters insurance, the insurance company will likely pay all of these EXCEPT...
A) The cost of replacing damaged sections of the roof and any broken windows
B) The cost of replacing any items inside the apartment that completely burned in the fire
C) The cost of replacing items ruined by water as firefighters put out the fire
D) The cost of your hotel room for a week while your apartment is cleaned up
Answers
Answer:
d
Explanation:
because its not really their job to find u a temporary place to live while they get ur apartment fixed
If your apartment catches on fire and you have renters insurance, the insurance company will likely pay all of these EXCEPT The cost of your hotel room for a week while your apartment is cleaned up. Thus the correct option is D.
What is Insurance?A contract in which an individual or organization pays a premium to an insurance firm in exchange for protection against future financial losses is termed Insurance.
A type of insurance named Renters insurance is designed to protect renters from economic harm that may occur as a result of either harm to their personal belongings or liability for harm or injury they have caused to others.
Renters' insurance is often less expensive than other types of insurance, and it is frequently required by renters as an integral part of renting a property. It can give tenants peace of mind as well as financial security.
Therefore, option D is appropriate.
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The board of directors of Herbalife Nutrition approved a 2-for-1 stock split. After the split, how many shares of Herbalife stock will an investor have if he owned 1,020 shares before the split
Answers
If the board of directors of Herbalife Nutrition approved a 2-for-1 stock split. After the split, the number of shares of Herbalife stock will an investor have if he owned 1,020 shares before the split is:2,040 shares.
Using this formula to find the number of shares
Number of shares before the split = Number of shares owned × Stock split
Let plug in the formula
Number of shares before the split = 1,020 shares × 2/1
Number of shares before the split = 2,040 shares
Therefore we can conclude that the number of shares before the split is 2,040 shares.
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what is the real name of rocky
Answers
who is the preaident of India
Answers
Answer:
Ram Nath Kovind
Explanation:
The year is 2022 and today is July 1 (by assumption). You plan to fly from Newark to Amsterdam on August 2 and return on August 25. Today you can buy a one-way ticket for $350 or a round-trip ticket for $660. You could also wait until August 1 to buy your tickets. On August 1, a one-way ticket in either direction will cost $370, and a round-trip ticket will cost $730. Between July 1 and August 1, there is a 30% chance that your best friend will be able to provide you with a free one-way ticket as a present. If you buy a round-trip ticket on July 1 for $660 and your friend provides a free ticket, then you can return the second half of your round-trip ticket to the airline, after paying a $50 penalty. In this case, your net travel cost will become $380. Develop a decision tree to determine how to minimize your expected travel cost. Find the optimal policy.
Answers
The optimal policy will be to book a round-trip ticket.
Based on the information given, there is a 30% chance that my best friend will be able to provide you with a free one-way ticket as a present. This will be represented on the decision tree as 0.3.
Therefore, the probability that I will not get a free ticket will be 0.7 which is calculated as 0.3 subtracted from 1.
The cost of booking the return ticket on August 1st will be:
= 350 + 370
= 720
In conclusion, the minimum expected travel is $576. The optimal strategy will be to book the round ticket now. An attachment has been attached for further understanding.
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What’s the anti-money laundering (AML)
program ?
Answers
Answer: An anti-money laundering (AML) program is a set of procedures designed to guard against someone using the firm to facilitate money laundering or terrorist financing.
Explanation:
Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31
Answers
The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.
The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.For more questions on cost of goods sold (COGS)
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A country is angry at a neighboring country for creating too much water and
air pollution. It passes a law that forbids its citizens from doing any business
with the other country until that country cleans up the pollution. If the
pollution continues, there will be no trade between the countries.
This is an example of which type of trade barrier?
A. Tariffs
B. Embargoes
C. Subsidies
D. Quotas
Answers
The trade barrier which is displayed is called as Embargoes. Hence, Option B is the correct statement.
What do you mean by Embargoes?An embargo is a central authority order that restricts trade or alternates with a precise country, commonly due to political or financial problems.
An embargo is commonly created due to damaging political or financial occasions among nations. It is designed to isolate a rustic and create problems for its governing body, forcing it to behave on the difficulty that brought about the embargo.
Hence, Option B is the correct statement.
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A company's image and reputation, how the outside world sees the product or company, is also called the company's
A. value proposition.
B. brand
C.logo
D.inventory
Answers
if multimarket target audience similarities exist, then panregional or global campaigns can be attempted.
Answers
It is true that panregional or worldwide marketing can be tried if there are similarities among multimarket target audiences.
What is Multi-Market Strategy?Businesses that use a multi-marketing approach go out against one another in a variety of unique regional marketplaces. These businesses actively avoid competing businesses that offer unique products to the entire market. Globalization has increased multimarket rivalry. The study of circumstances where businesses compete against one another simultaneously in multiple markets is known as multimarket competition. The aggressiveness and market uncertainties, which have an impact on the competing strategies, determine the level of competition.
Which theory is also known as multi market theory?According to the idea of multimarket competition, when the number of markets in which two firms compete increases, the phenomenon of mutual forbearance may lessen the level of competition between the two firms at the market level. The most locally focused of the models offered is a multi-domestic strategy, which prioritizes local responsiveness over global standardization. This is a genuine "local-first" strategy that entirely changes the product, messaging, go-to-market plan, and customer support in accordance with the market.
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Describe Barcelona's three stage process for matching job applicants with its organizational objectives, and explain how each stage reveals the fit between applicants and the needs of the restaurant?
Answers
The following are the three measures Barcelona takes to match job applicants with its organizational objectives:
evaluating the applicantsPlan a shopping excursion.Workplace encounters with real-world situationsWe interview prospective workers for what reasons?An key step in the hiring process is the interview. The interview provides the employer the chance to determine whether an applicant's abilities, experiences, and personality are compatible with those of the position, provided it is performed correctly.
What is a shopping excursion like, in your opinion?A customer's buying experience is the sum of their perceptions both before and after making a purchase of an item or service. Senses, feelings, and emotions play a huge role in the purchasing process.
Why should you use examples from your own life in the interview?Inquiries regarding actual life events, known as competence questions, are frequently asked during job applications and interviews. Your responses aid in demonstrating that you possess the abilities and information hiring managers are looking for.
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