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  3. commencement date annual lease payment due at the

Commencement date Annual lease payment due at the beginning of each year, beginning with...

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Accounting

Commencement date
Annual lease payment due at the beginning of
each year, beginning with May 1,2025
Bargain purchase option price at end of lease term
Lease term
Economic life of leased equipment
Lessor's cost
Fair value of asset at May 1,2025
Lessor's implicit rate
Lessee's incremental borrowing rate
May 1,2025
$19,621.69
$7,000
5 years
10 years
$65,000
$96,599.97
4%
4%
The collectibility of the lease payments by Splish Brothers is probable.
Click here to view factor tables.
(a)
Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as
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