Brief Exercise 15-14 Residual value; sales-type lease [LO15-2, 15-3, 15-6 On January 1, James industries lesed equipment to a customer for a five-year period, at which time possession ofthe leased asset will revert back to James. The equipment cost James $880.000 and has an expected usoful life of seven years, Its normal sales price is $880,000. The residual value after five years is $100.000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 6%. EVotsi, pyotS. EVAortt pyaorst EVADatti and PVADofsn (Use appropriate factors) from the tables provided.) Calculate the amount of the annual lease payments. Guaranteed Residual Value Table or colculator function Amount to be recovered (fair value) Guaranteed residual value Amount to be recovered through periodic lease payments Lease Payment Table or calculator function Lease Payments Amount of fair value repovered each lease payment