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On December 31, 2024, Metiock Corporation signed a 6-year, non-cancelable lease for a machine. The...

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Accounting

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On December 31, 2024, Metiock Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $12,395 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 8 years and a $6,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term, Metlock uses the stralght-line method of degreciation for all of its plant assets. Metlock's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Click here to view factor tables. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor toble provided and round final answer to 0 decimal ploceses. 5,275. Present value of the lease payments

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