Crane Company, a machinery dealer, leased a machine to Cullumber Corporation on January $1,2025.$ The lease is for an $8-$year perior and requires equal annual payments of $$32,359$ at the beginning of each year. The first payment is received on January $1,2025.$ Cran had purchased the machine during $2024$ for $$140,000.$ Collectibility of lease payments by Crane is probable. Crane 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 Crane at the termination of the lease.

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$($a$)$

Your answer is correct.

Compute the amount of the lease receivable. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places e$.$g$.5,275.)$

Amount of the lease receivable $ $$

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Attempts: $1$ of $3$ used

Crane Company, a machinery dealer, leased a machine to Cullumber Corporation on January $1,2025.$ The lease is for an $8-$year period and requires equal annual payments of $$32,359$ at the beginning of each year. The first payment is received on January $1,2025.$ Crane had purchased the machine during $2024$ for $$140,000.$ Collectibility of lease payments by Crane is probable. Crane 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 Crane at the termination of the lease.

Click here to view factor tables.

$($a$)$

Your answer is correct.

Compute the amount of the lease receivable. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places e$.$g$.5,275.)$

Amount of the lease receivable

$

eTextbook and Media

List of Accounts

Attempts: $1$ of $3$ used

Suppose at the end of the lease term, Crane receives the asset and determines that it actually has a fair value of $$1,320$ instead of the anticipated residual value of $$0.$ Record the entry to recognize the receipt of the asset for Crane at the end of the lease term. $($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to $0$ decimal places eg$.5,275.$ If no entry is required, select $"$No Entry" for the account titles apd enter O for the amounts.$)$

$\backslash$table$[[$Date Account Titles and Explanation,Debit$],[\frac{1}{1}\frac{?}{25},]]$