Exercise $15-15($Algo$)$ Sales$-$type lease; lessor; income statement effects $[$LO $15-3]$

Zhang Company leased equipment from Mann Industries. The lease agreement qualifies as a finance lease and

requires annual lease payments of $$52,588$ over a six$-$year lease term $($also the asset's useful life$),$ with the first

payment on January $1,$ the beginning of the lease. The interest rate is $4\%.$ The asset being leased cost Mann $$236,700$

to produce.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Determine the price at which the lessor is "selling" the asset $($present value of the lease payments$).$

What would be the amounts related to the lease that the lessor would report in its income statement for the year

ended December $31($ignore taxes$)?$

Complete this question by entering your answers in the tabs below.

What would be the amounts related to the lease that the lessor would report in its income statement for the year ended

December $31($ignore taxes$)?$

Note: Input decreases to income as negative amounts. Round your intermediate and final answers to the nearest whole dolla