Sandhill Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2022. The lease is for an 8-year period and requires equal annual payments of $23,560 at the beginning of each year. The first payment is received on January 1, 2022. Sandhill had purchased the machine during 2021 for $150,000. Collectibility of lease payments by Sandhill is probable. Sandhill set the annual rental to ensure a 4% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Sandhill at the termination of the lease.
Click here to view factor tables,
(a)
X Your answer is incorrect.
Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places eg. 5,275)
Amount of the lease receivable
$
13.187.27
eTextbook and Media
List of Accounts