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

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Accounting

On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased
asset will revert back to James. The equipment cost James $870,000 and has an expected useful life of six years. Its normal sales
price is $870,000. The residual value after four years is $270,000. 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 5%.
Calculate the amount of the annual lease payments.
Note: Use tables, Excel, or a financial calculator. Enter amounts as positive values rounded to the nearest whole dollar. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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