Business
Business, 30.05.2020 01:59, morgan15776

Carla Company, a machinery dealer, leased manufacturing equipment to Mays Corporation on January 1, 2017. The lease is for a 7-year period and requires equal annual payments of $28,898 at the beginning of each year. The first payment is received on January 1, 2017. Carla had purchased the machine during 2016 for $100,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Carla. Carla set the annual rental to ensure a 6% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Carla at the termination of the lease. Required:Compute the amount of the lease receivable. (Round present value factor calculations to 5 decimal places, e. g. 1.25124 and the final answer to 0 decimal places e. g. 58,971.)

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Carla Company, a machinery dealer, leased manufacturing equipment to Mays Corporation on January 1,...

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