Exercise 21A-8 a-d Carla Vista 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 $30,080 at the beginning of each year. The first payment is received on January 1, 2017. Carla Vista had purchased the machine during 2016 for $116,000. Collectibility of lease payments by Carla Vista is probable. Carla Vista set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Carla Vista at the termination of the lease lick here view the factor table Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.) Amount of the lease receivable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare all necessary journal entries for Carla Vista for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually Round answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record the lease) (To record the first lease payment) 12/31/17 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Suppose the collectibility of the lease payments was not probable for Carla Vista. Prepare the necessary journal entry for the company in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) bo not indent manuoe necessany Date Account Titles and Explanation Debit Credit Suppose at the end of the lease term, Carla Vista receives the asset and determines that it actually has a fair value of $1,350 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Carla Vista at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2% 2 % 3% 4% 5% 6% 94340 1.83339 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.645834.57971 4.45182 4.329484.21236 5.60143 5.508135.417195.24214 5.075694.91732 6.47199 6.34939 6.23028 6.00205 5.786375.58238 7.32548 7.170147.01969 6.73274 6.46321 6.20979 8.16224 7.97087 7.78611 7.43533 7.107826.80169 8.98259 8.75206 8.53020 8.11090 7.721737.36009 9.78685 9.51421 9.25262 8.76048 8.306417.88687 10.57534 10.25776 9.95400 9.385078.86325 8.38384 11.34837 10.98319 10.63496 9.98565 9.393578.85268 12.10625 11.69091 11.29607 10.56312 9.898649.29498 12.84926 12.38138 11.9379411.11839 10.379669.71225 98039 .97561 97087 .96154 .95238 1.94156 1.92742 1.91347 1.88609 1.85941 4 13 14 15 Table 6.2 PRESENT VALUE OF1 (PRESENT VALUE OF A SINGLE SUM) 5% 94340 89000 83962 79209 74726 70496 .66506 62741 .59190 55839 .52679 49697 (n) Periods 3% 98039 .97561 .97087 .96154 .95238 96117 .95181 .94260 .92456 .90703 94232 .92860.91514 .88900 .86384 92385 .90595 .88849 .85480 .82270 90573 .88385 .86261 .82193 .78353 88797 .86230 .83748 .79031 .74622 87056 .84127 .81309 .75992 .71068 85349.82075 .78941 .73069 .67684 83676 .80073 .76642 .70259 .64461 .82035 .78120.74409 .67556 .61391 80426 .76214 .72242 .64958 .58468 .78849 .74356 .70138 .62460 .55684 2% 24% 4% 5% 10 12 5. PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the b periodic intervals for the specified number of periods (Table 6.5) (n) Periods 2% 1.00000 .00000 1.00000 1.00000 .00000 .00000 1.98039 .97561 1.97087 1.96154 1.95238 1.94340 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.329485.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.786376.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.162248.97087 8.78611 8.43533 8.10782 7.80169 9.98259 9.75206 9.53020 9.11090 8.721738.36009 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 11.57534 11.25776 10.95400 10.38507 9.863259.38384 2 % 3% 4% 5% 6% 4 10 12 13