5. PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the b periodic intervals for the specified number of periods (Table 6.5) (n) Periods 2% 1.00000 .00000 1.00000 1.00000 .00000 .00000 1.98039 .97561 1.97087 1.96154 1.95238 1.94340 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.329485.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.786376.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.162248.97087 8.78611 8.43533 8.10782 7.80169 9.98259 9.75206 9.53020 9.11090 8.721738.36009 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 11.57534 11.25776 10.95400 10.38507 9.863259.38384 2 % 3% 4% 5% 6% 4 10 12 13 Table 6.2 PRESENT VALUE OF1 (PRESENT VALUE OF A SINGLE SUM) 5% 94340 89000 83962 79209 74726 70496 .66506 62741 .59190 55839 .52679 49697 (n) Periods 3% 98039 .97561 .97087 .96154 .95238 96117 .95181 .94260 .92456 .90703 94232 .92860.91514 .88900 .86384 92385 .90595 .88849 .85480 .82270 90573 .88385 .86261 .82193 .78353 88797 .86230 .83748 .79031 .74622 87056 .84127 .81309 .75992 .71068 85349.82075 .78941 .73069 .67684 83676 .80073 .76642 .70259 .64461 .82035 .78120.74409 .67556 .61391 80426 .76214 .72242 .64958 .58468 .78849 .74356 .70138 .62460 .55684 2% 24% 4% 5% 10 12 Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2% 2 % 3% 4% 5% 6% 94340 1.83339 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.645834.57971 4.45182 4.329484.21236 5.60143 5.508135.417195.24214 5.075694.91732 6.47199 6.34939 6.23028 6.00205 5.786375.58238 7.32548 7.170147.01969 6.73274 6.46321 6.20979 8.16224 7.97087 7.78611 7.43533 7.107826.80169 8.98259 8.75206 8.53020 8.11090 7.721737.36009 9.78685 9.51421 9.25262 8.76048 8.306417.88687 10.57534 10.25776 9.95400 9.385078.86325 8.38384 11.34837 10.98319 10.63496 9.98565 9.393578.85268 12.10625 11.69091 11.29607 10.56312 9.898649.29498 12.84926 12.38138 11.9379411.11839 10.379669.71225 98039 .97561 97087 .96154 .95238 1.94156 1.92742 1.91347 1.88609 1.85941 4 13 14 15 Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2% 2,4% 3% 4% 5% 5% 94340 1.83339 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.645834.57971 4.45182 4.32948 4.21236 5.601435.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.349396.23028 6.002055.786375.58238 6.20979 8.162247.970877.78611 7.435337.107826.80169 8.98259 8.75206 8.530208.11090 7.721737.36009 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 11.34837 10.98319 10.63496 9.98565 9.393578.85268 12.10625 11.69091 11.29607 10.56312 9.898649.29498 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 98039.97561.97087.96154.95238 1.94156 1.92742 1.91347 1.88609 1.85941 4 7.32548 7.17014 7.019696.73274 6.46321 10 12 13 14 15 Exercise 21A-12 a-f On January 1, 2017, Crane Company leased equipment to Flynn Corporation. The following information pertains to this lease The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has the option to purchase the equipment for $2,000, while the expected residual value at the end of the lease is $7,000 2. Equal rental payments are due on January 1 of each year, beginning in 2017. 3. The fair value of the equipment on January 1, 2017, is $130,000, and its cost is $100,000 4. The equipment has an economic life of 8 years. Flynn depreciates all of its equipment on a straight-line basis 5, Crane set the annual rental to ensure a 5% rate of return. Flynn's incremental borrowing rate is 6%, and the implicit rate of the lessor is unknown. 6. Collectibility of lease payments by the lessor is probable. Both the lessor and the lessee's accounting periods end on December 31 Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is incorrect. Try again. Calculate the amount of the annual rental payment. (Round answer to O decimal places, e.g. 5,275.) Annual rental payment 23412 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare all the necessary journal entries for Crane for 2017. (Credit account titles are automatically indented when the amount is entered. Do manually. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/17 Lease Receivable 130000 Cost of Goods Sold 94776 Sales Revenue 124776 Inventory 100000 (To record the lease)