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  3. at january 1,2024, sunset company leased restauran

At January 1,2024, Sunset Company leased restaurant equipment from Cedar Corporation under a five-year lease...

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Accounting

At January 1,2024, Sunset Company leased restaurant equipment from Cedar Corporation under a five-year lease agreement in a finance lease. The lease agreement specifies annual payments of $90,000 beginning January 1,2024, the beginning of the lease, and at each December 31 thereafter through 2027. The equipment was acquired recently by Cedar and was expected to have a useful life of six years with no salvage value at the end of its life. Cedar seeks a 4% return on its lease investments. The amount of lease liability reported on December 31,2024 balance sheet by Sunset would be:
\table[[,Present Value of Ordinary Annuity of $1,Present Value of Annuity Due of $1,,],[Period,3%,4%,6%,8%,3%,4%,6%,8%
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