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Exercise 21-6 (Part Level Submission) Cheyenne Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an
Exercise 21-6 (Part Level Submission) Cheyenne Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $34,137 at the beginning of each year. The first payment is received on January 1, 2017. Cheyenne had purchased the machine during 2016 for $155,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Cheyenne. Cheyenne set the annual rental to ensure an 11% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Cheyenne at the termination of the lease. Click here to view factor tables Your answer is incorrect. Try again Compute the amount of the lease receivable. (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 amount of the lease receivable 273096 Click if you would like to Show Work for this question: Open Show Work
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