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  3. the following facts pertain to a non-cancelable le

The following facts pertain to a non-cancelable lease agreement between Marin Leasing and Cullumber Group,...

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Accounting

The following facts pertain to a non-cancelable lease agreement between Marin Leasing and Cullumber Group, a lessee (amounts in thousands).

Commencement date May 1, 2022
Annual lease payment due at the beginning of
each year, beginning with May 1, 2022 26,864.68
Bargain purchase option price at end of lease term 3,000
Lease term 5 years
Economic life of leased equipment 10 years
Lessors cost 92,000
Fair value of asset at May 1, 2022 120,000.00
Lessors implicit rate 7 %
Lessees incremental borrowing rate 7 %

The collectibility of the lease payments by Marin is probable. Click here to view factor tables.

(a)

Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 0 decimal places, e.g. 5,275.)

Lease receivable at commencement =

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