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On January 1, James Industries leased equipment to a customer for a five-year period, at...

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Accounting

On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $750,000 and has an expected useful life of seven years. Its normal sales price is $750,000. The residual value after five years is $150,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Calculate the amount of the annual lease payments. (Enter amounts as

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