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Exercise 21-1 On January 1, 2017, Vaughn Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Vaughn to

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Exercise 21-1 On January 1, 2017, Vaughn Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Vaughn to make annual payments of $8,479 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $4,600 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Vaughn uses the straight-line method of depreciation for all of its plant assets. Vaughn's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view factor tables Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) The present value of the minimum lease payments

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