17000 is not Correct answer

Sunland Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Coronado Medical Center for a period of 10 years. The normal selling price of the machine is $513,121, and its guaranteed residual value at the end of the non- cancelable lease term is estimated to be $17,000. The hospital will pay rents of $62,000 at the beginning of each year. Sunland incurred costs of $266,000 in manufacturing the machine and $15,400 in legal fees directly related to the signing of the lease. Sunland has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Coronado Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of $10,000. Click here to view factor tables. (a) Your Answer Correct Answer Your answer is correct. Discuss the nature of this lease in relation to the lessee. The nature of this lease in relation to the lessee is finance lease Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, eg 1.25124 and the final answer to decimal places eg. 5,275.) Initial Lease Liability 506982 (b) Prepare a 10-year lease amortization schedule. (Round answers to decimal places eg. 5,275.) CORONADO MEDICAL (Lessee) Lease Amortization Schedule (Annuity Due Basis, GRV) Annual Lease Interest on Reduction of Lease Payment Plus GRV Unpaid Liability Liability $ $ Lease Liability 506982 62.000 62.000 444982 62.000 22249 39751 405231 62,000 20262 41738 363493 62.000 18175 43825 319667 62.000 15983 46017 273651 62.000 13683 48317 225333 62.000 11267 50733 174600 62.000 87300 53270 121330 62.000 6066.49 55934 65396 62,000 3270 58730 6666 2 17000 $ $