Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. teal mountain leasing group signs an agreement on

Teal Mountain Leasing Group signs an agreement on January 1, 2022, to lease equipment to...

70.2K

Verified Solution

Question

Accounting

Teal Mountain Leasing Group signs an agreement on January 1, 2022, to lease equipment to Cole plc. The following information relates to this agreement.

1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.
2. The cost of the asset to the lessor is 230,000. The fair value of the asset at January 1, 2022, is 230,000.
3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of 24,335, none of which is guaranteed.
4. The agreement requires equal annual rental payments, beginning on January 1, 2022.
5.

Collectibility of the lease payments by Teal Mountain is probable.

Assuming the lessor desires an 10% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to 0 decimal places e.g. 5,275.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Which of the following is most likely to enter the cell via endocytosis when moving...

Biology
1.2K views

uestion 8 patient is infected with a multidrug antib macrolide D platensimycin

Biology
1.2K views

Which of thefollowing is thebest definitionof Summarize?A. Gather intocategoriesB. CondenseC. Persuade

Biology
1.2K views

as Word automatically formats each heading in a table of conter Bookmarks Cross references Hyperlinks...

Algebra
1.2K views

Match each type of life insurance to its definition term life whole life universal life...

Algebra
1.2K views

Find a polynomial of degree 3 with only real coefficients and zeros of 7 1...

Algebra
1.2K views

One factor of the function fix x 9 20x 12 is x 6 Describe how...

Accounting
1.2K views

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's...

Accounting
1.2K views

Please answer all questions listed. Whatever I can do to help, by giving a positive...

Accounting
1.2K views

Tim Mattke Company began operations in 2012 and for simplicity reasons, adopted weighted-average pricing for...

Accounting
1.2K views

Surrent Attempt in Progress The following totals for the month of April were taken from...

Finance
1.2K views

Personal auto insurance policies often do not cover betterment. Give a brief example of betterment....