- - - - = - = -- - 11 341516 2. On December 31, 2020, Reagan Inc, signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2026. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below: Decrease in Balance Payments Interest $ $ Dec. 31 2020 2020 2021 2022 2023 2024 2025 2026 $ 76,700 $ 76,700 $ 76,700 $ 76,700 $ 76,700 $ 76,700 $ 30,700 35,045 30,046 24,448 18,177 11,155 3,289 76,700 41,655 46,654 52,252 58,523 65,545 27,411 Outstanding Balance $ 368,740 292,040 250,385 203,731 151,479 92,956 27,411 What is the effective annual interest rate charged to Reagan on this lease? 24%. 4% 12% 15% 18. On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. Annual lease payments are $27,200 due on December 31 of each year, calculated by the lessor using a 6% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $81,600 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be 577,700. What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee? (Round your answer to the nearest whole dollar.) The present value of $1:- 4,16% is 0.79209. The present value of an ordinary annuity of $1:-4,1-6% is 3.46511. The present value of an annuity due of $1:- 4,1 -6% is 3.67301. 55,386 $3,089 53,878 53,693