Current Attempt in Progress

Crane Corporation, which uses ASPE, enters into a $6-$year lease of equipment on September $1,2023,$ that requires $6$ annual payments of $$39,000$ each, beginning September $1,2023.$ In addition, Crane guarantees the lessor a residual value of $$29,000$ at lease end. The equipment has a useful life of seven years.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF $1.$

$($a$)$

Using $(1)$ tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the amount of the capital lease and prepare Crane's September $1,2023$ journal entry assuming an interest rate of $8\%.$