Problem 21A-9 a2-c (Part Level Submission) Ayayai Company manufactures a check-i

Question

Problem 21A-9 a2-c (Part Level Submission) Ayayai Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $350,142, and its unguaranteed residual value at the end of the lease term is estimated to be $18,300. National will pay annual payments of $41,800 at the beginning of each year. Ayayai incurred costs of $167,000 in manufacturing the equipment and $4,300 in sales commissions in closing the lease. Ayayai has determined that the collectibility o the lease payments is probable and that the implicit interest rate is 5% Click here to view factor tables (a2) Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places, e.g. 5,275.) (1) Lease receivable (2) Sales price (3) Cost of sales s Attempts: o of 5 used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

ans Lease Receivable $350,142 Sales 338907 350142-(18300*PVIF(5%,10)) 350142-(18300*.61391) Cost of sales 155765 167000-(18300*.61391)

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