Seif Oil Corporation leased 4,000 unexplored acres, paying a lease bonus of $125/acre. Delay rentals are specified at a rate of $4.50/acre. The lease also specified that Seif could abandon the lease in 1,000-acre portions. At the end of year 1, Maqam abandons 2,000 acres and paid a delayed rental on the required: Prepare journal entries for the above activities

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.