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Saved Help Save & Exit Sub On January 1, Smith Industries leased equipment to a...

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Accounting

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Saved Help Save & Exit Sub On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to Smith. The equipment cost Smith $405,000 and has an expected useful life of six years. Its normal sales price is $405,000. The residual value after four years is $100,000. 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 10%. Calculate the amount of the annual lease payments. (Round your answer to the nearest whole dollar) The present value of $t: n = 4,1 = 10% is 0.68301. The present value of an ordinary annuity of $1: n=4.7 = 10% is 3.16987. The present value of an annuity due of $t: n=4./ = 10% is 3.48685. Multiple Choice $96.563 $106.210 a $127765 $79,332

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