Question
Diablo Company leased a machine from Juniper Corporation on January 1, 2018. The machine has a fair value of $21,100,000. The lease agreement calls for
Diablo Company leased a machine from Juniper Corporation on January 1, 2018. The machine has a fair value of $21,100,000. The lease agreement calls for four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. The appropriate interest rate for this lease is 12%. Other information: PV of an ordinary annuity @12% for 4 periods: 3.03735 PV of an annuity due @ 12% for 4 periods: 3.40183 Required: Determine the amount of each lease payment. (Round your final answer to the nearest whole dollar.)
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