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Riverbed Inc. manufactures an X$-$rayy machine with an estimated life of $12$ years and leases it to Chambers Medical Center for a period $(2)$ Sales price

$(3)$ Cost of sales

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List of Accounts

$($b$)$

Prepare a $10-$year lease amortization schedule for Riverbed, the lessor. $($Round answers to $0$ decimal places e$.55,275.)\frac{0\mathrm{.}5}{2}$ Question $6$ of $6$

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List of Accounts

$($c$).$

mot indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers to $0$decimal places e $-5,275.$ Record journal entries in the order presented in the problem. Listall debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit $$

Credit

$($To record the lease.$)$

$($To record direct costs incurred on account.$)$

of $10$ years. The normal selling price of the machine is $$497,103,$ and its guaranteed residual value at the end of the non$-$cancelable

lease term is estimated to be $$16,000.$ The hospital will pay rents of $$60,100$ at the beginning of each year. Riverbed incurrred costs of

$$263,000$ in manufacturing the machine and $$14,200$ in legal fees directly related to the signing of the lease. Riverbed has determined

that the collectibility of the lease payments is probable and that the implicit interest rate is $5\%.$

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$($a$)$

Your answer is partially correct.

Discuss the nature of this lease in relation to the lessor.

The nature of this lease in relation to the lessor is

Compute the amount of each of the following items. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the

final answers to $0$ decimal places, e$.$g$.5,275.)$

$(1)$ Lease receivable at commencement of the lease

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