Davis Co., a lessor, signed a direct financing lease on January 1. The cost and fair value of the machine that was leased was $60,000. The implicit interest rate was 6%. The lease period was seven years, with the first payment due immediately. Actuarial information for 6% follows: Present value of ordinary annuity of $1 O $8,571.43 What is the annual lease payment to be collected by Davis? O $9,115.25 O $10,139.72 6 Years O $11,516.78 4.91732 7 Years 5.58238 8 Years 6.20979

Davis Co,, a lessor, signed a direct financing lease on January 1. The cost and fair value of the machine that was leased was $60,000. The implicit interest rate was 6%. The lease period was seven years, with the first payment due immediately. Actuarial information for 6% follows: What is the annual lease payment to be collected by Davis? $8,571.43 $9,115.25 $10,139.72 $11,516.78