Cullumber Corp. is a manufacturer of truck trailers. On January 1, 2021, Cullumber Corp. leases 9 trailers to Vaughn Company under a 7-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. 2. 3. 4. Equal annual payments that are due on January 1 each year provide Cullumber Corp. with an 10% return on net investment. Titles to the trailers pass to Vaughn at the end of the lease. The fair value of each trailer is $50,100. The cost of each trailer to Cullumber Corp. is $46,600. Each trailer has an expected useful life of nine years. Collectibility of the lease payments is probable. Click here to view factor tables. (a) What type of lease is this for the lessor? eTextbook and Media List of Accounts Save for Later Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer

Cullumber Corp. is a manufacturer of truck trailers. On January 1, 2021. Cullumber Corp. leases 9 trallers to Vauchn Company under a 7.vearnoncancelable lease agreement. The followine informstion about the leste and the trallers is provided 1. Equal annual payments that are due on January 1 each year provide Cullumber Corp. whth an 10 ow return on net investment. 2. Titles to the trallers ass to vaughn st the ead of the lesse. 3. The fair value of each traler is $50,100. The cost of each traller to Cullumber Corp. is $46,600. Each trailer has an expected useful life of nine years. 4. Collectibilitv of the lease payments is probable. Click here to view factor tablet. (a) What type of lease is this for the lessor? eTextbook and Media List of Accounts Attempts o of 1 used (b)