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Exercise 21 On January 1, 2017, Stellar Corporation signed a 5-year noncancelable lease...

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Accounting

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Exercise 21 On January 1, 2017, Stellar Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Stellar to make annual payments of $8,482 at the beginning of each year, starting January 1, 2017. The machine incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. -1 annual paysmelar uses the str mcoa ef deorelesearting lanuary 1, 2017.The has an has an estimated useful life of 6 years and a 5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Stellar uses the straight-line method of depreciation for all of its plant assets. Stellar's hegh % and the lessor's imp Compute the present value of the minimum lease payments. Round present value factor calculations to 5 decimal places e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,9 The present value of the minimum lease payments

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