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Pharoah Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020....

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Accounting

Pharoah Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $29,625 at the beginning of each year. The first payment is received on January 1, 2020. Pharoah had purchased the machine during 2016 for $128,000. Collectibility of lease payments by Pharoah is probable. Pharoah set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Pharoah at the termination of the lease.

Compute the amount of the lease receivable. (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.)

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