Exercise 21A-5 a-c

Teal Mountain Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.
2.		The cost of the asset to the lessor is $341,000. The fair value of the asset at January 1, 2017, is $341,000.
3.		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 $20,010, none of which is guaranteed.
4.		The agreement requires equal annual rental payments, beginning on January 1, 2017.
5.		Collectibility of the lease payments by Teal Mountain is probable.

Prepare an amortization schedule that is suitable for the lessor for the lease term, with a desired rate of return of 8%. (HELP WITH THIS PART). Thanks

Exercise 21A-5 a-c Teal Mountain Leasing Company signs an agreement on January 1, 2017, 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 $341,000. The fair value of the asset at January 1, 2017, is $341,000. 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 $20,010, none of which is guaranteed The agreement requires equal annual rental payments, beginning on January 1, 2017. Collectibility of the lease payments by Teal Mountain is probable Click here to view the factor table Your answer is correct. Assuming the lessor desires a 8% 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 fial answer to o decimal places e.g. 5,275.) Amount of the annual rental payment 65774 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to O decimal places e.g. 5,275.)