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I have no idea what is wrong in my answers. Can you fix my answers? The red box is wrong answers.
Exercise 21A-1 a Your answer is partially correct. Try again. Tamarisk enters into an agreement with Traveler Inc. to lease a car on December 31, 2016. The following information relates to this agreement The term of the non-cancelable lease is 5 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease termm 2. The fair value of the car was $15,540 at commencement of the lease 3. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning December 31, 2017, The first payment is to be of an amount of $5,752.82, with each payment ncreasing by a constant rate of 5% fro m the previous payment a Tamarisk' incremental borrowing rate is 8%. The rate implicit in the lease is unknown. Tamarisk uses straight-line depreciation for all similar cars the second payment will be s6,040 46 and the third and final pay ent wil be So,M2AB 4
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