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  3. on december 31, 2016, metlock corporation signed a

On December 31, 2016, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The...

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On December 31, 2016, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $8,176 at the beginning of each year, starting December 31, 2016. The machine has an estimated useful life of 6 years and a $5,000 unquaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Metlock uses the straight-line method of depreciation for all of its plant assets. Metlock's incremental borrowing rate is 8%, and the lessor's implicit rate is unknown. ? (a) ?Your answer is correct. What type of lease is this? This is a/an finance This is a/anlease SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used ? (b) [ Your answer is correct. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, e.g. 5,275.) Present value of the lease 35256 payments

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