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On December 31, 2024, Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The...

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Accounting

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On December 31, 2024, Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8,476 at the beginning of each year, starting December 31,2024 . The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong' sincremental borrowing rate is 11%, and the lessor's implicit rate is unknown. 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 es. 5, 275.) Present value of the lease payments

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