Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January $1,2025.$ The

first payment is received on January $1,2025.$ Collectability of lease payments by Crosley is probable. The

machine has no residual value and reverts to Crosley at the termination of the lease. Information

concerning the lease appears below.

Lease term in years: $8.$ Annual payments at the beginning of each year: $$35,004.$ Cost of purchasing machine during $2024$ by Crosley: $$160,000.$ Rate used by Crosley to set the annual rental payment: $6\%.$ Economic life of machine in years: $10.$

Instructions

a$.$ Compute the amount of the lease receivable using Excel's present value function. Lease receivable using Excel's PV function. What is the excel PV formula to calculate the lease receivable?

b$.$ Prepare all necessary journal entries for Crosley for $2025.$

c$.$ Suppose the collectibility of the lease payments was not probable for Crosley. Prepare all necessary journal entries for the company in $2025.$

d$.$ Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $$1,000$ instead of the anticipated residual value of $$0.$ Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term.