Exercise 21-05 (Part Level Submission) Marin Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. 2. 3. 4. 5. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $291,000. The fair value of the asset at January 1, 2020, is $291,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $29,100, none of which is guaranteed. The agreement requires equal annual rental payments, beginning on January 1, 2020. Collectibility of the lease payments by Marin is probable. Click here to view factor tables. (a) Your answer is correct. Assuming the lessor desires a 9% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to o decimal places e.g. 5,275.) Amount of the annual rental payment 55964 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 2 of 2 used Your answer is partially correct. Try again. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.) MARIN LEASING COMPANY (Lessor) Lease Amortization Schedule Interest on Lease Recovery of Lease Receivable Receivable Annual Lease Payment Plus URV Lease Receivable Date 1/1/20 291000 1/1/20 55964 55964 235036 1/1/21 55964 21153 34811 200225 1/1/22 55964 18020 37944 1162282 1/1/23 55964 14605 ExVVVVVLx 41359 120923 1/1/24 55964 10883 45081 VVVVE 75842 1/1/25 55964 | 6826 49138 26704 12/31/25 29100 2403 26697 364884 73891 291000 Attempts: 1 of 2 used