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Kingbird Company manufactures a check-in kiosk with an estimated economiclife of 12 years...

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Accounting

Kingbird Company manufactures a check-in kiosk with an estimated economiclife of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $304,659, and its unguaranteed residual value at the end of the lease term is estimated to be $19,400. National will pay annual payments of $40,800 at the beginning of each year. Kingbird incurred costs of $164,100 in manufacturing the equipment and $3,900 in sales commissions in closing the lease. Kingbird has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 8%.
Click here to view factor tables.
(a)
Your answer is partially correct.
Discuss the nature of this lease in relation to the lessor.
This is a
Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, es.1.25124 and the finol answers to odecinal ploces, es.5.275.)
(1) Lease receivable i| $
(2) Sales price s
(3) Cost of sales $
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