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Carla Vista Company. a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-vear period and requires
Carla Vista Company. a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-vear period and requires equal annual payments of $30.080 at the beginning of each year. The frst payment is received on January 1.2020 Carla Vista had purchased the machine during 2019 for $116.000. Collectibility of lease payments by Carla Vista is probable. Carla Vista set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Carla Vista at the termination of the lease. Your answer is correct. Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as disployed in the factor tabie pravided and round final answer to 0 decimal ploces eg. 5,275 . Amount of the leasereceivable Suppose at the end of the lease term, Carla Vista receives the asset and determines that it actually has a fair value of $1.350 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Carla Vista at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places es. 5,275
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