Current Attempt in Progress

The following facts pertain to a non$-$cancelable lease agreement between Kingbird Leasing Company and Blossom Company, a lessee.

Commencement date

May $1,2025$

Annual lease payment due at the beginning of

each year, beginning with May $1,2025$

$$17,865\mathrm{.}02$

Bargain purchase option price at end of lease term

$$7,000$

Lease term

Economic life of leased equipment

Lessor's cost

$5$ years

$10$ years

Fair value of asset at May $1,2025$

$$65,000$

Lessor's implicit rate

$$85,000\mathrm{.}10$

Lessee's incremental borrowing rate

$6\%$

$6\%$

The collectibility of the lease payments by Kingbird is probable.

Click here to view factor tables.

$($a$)$

Compute the amount of the lease receivable at commencement of the lease. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round answer to $2$ decimal places, e$.$g$.5,275\mathrm{.}15.)$

Lease receivable at commencement

$ $$