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Sarasota Equipment Leasing Company leased equipment to Sunland Healthcare System on January 1,2025, for a...

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Accounting

Sarasota Equipment Leasing Company leased equipment to Sunland Healthcare System on January 1,2025, for a four-year period. Equal annual payments under the lease are $580000 and are due on January 1 of each year. The first payment was made on January 1,2025. The implicit rate of interest contemplated by Sarasota Equipment Leasing and known to Sunland Healthcare is 8%. Sunland's incremental borrowing rate is 12%. The cost of the equipment on Sarasota Equipment Leasing accounting records was $780000. Assuming that the lease is appropriately recorded as an operating lease, at what amount is the lease recorded on Sunland Healthcare System's books on January 1,2025?
\table[[,PV Annuity Due,PV Ordinary Annuity,PV Single Sum],[8%,4 periods,3.57710,3.31213,0.73503],[12%,4 periods,3.40183,3.03735,0.63552]]
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