Gail Equestrian Corp. (GEC), the buyer-lessor, purchased equipment for $1,000,000 cash on January 1, 2025, and entered into an agreement that grants another company ILF Inc. the right to use that equipment for five years. Relevant information includes: Payments under the lease are $160,000 per year, first payable on December 31, 2025. . The interest rate implicit in the lease is 6%, The fair value of the equipment at the time of sale was $1,000,000. The required lease payments reflect market rates. The estimated remaining useful life of the equipment at the time of sale was 10 years. The estimated residual value at the end of its useful life is $0. . The book value of the equipment at the time of sale was $1,200,000 cost less $400,000 accumulated depreciation. . Both companies have December 31 year ends. The residual value of the asset will be $436,291. The expected payout under the guarantee is $0. Required:

the right to use that oquipment for five years. Relevant information includes: - Payments under the lease are \\$160,000 per year, frst payable on December 31. 2025. - The incerest rate inplict in the lease is 6\\%. - The far value of the equipment at the time of sale was \\( \\$ 1,000,000 \\) - The regured lease payments refiect maket rates. - The estimated remainng useful ife of the equipment at the fime of sale was 10 years. The estrnated residual value at the end of its usehd life is so - The book value of the equipment at the sme of saln was \\( \\$ 1,200,000 \\) cost loss \\( \\$ 400,000 \\) accumulafed depreciation. - Boh corapantes have December 31 year endi - The residual value of the asset will be \\( \\$ 430,291 \\), The expected payout under the guarantee is 50 Required: the right to use that oquipment for five years. Relevant information includes: - Payments under the lease are \\$160,000 per year, frst payable on December 31. 2025. - The incerest rate inplict in the lease is 6\\%. - The far value of the equipment at the time of sale was \\( \\$ 1,000,000 \\) - The regured lease payments refiect maket rates. - The estimated remainng useful ife of the equipment at the fime of sale was 10 years. The estrnated residual value at the end of its usehd life is so - The book value of the equipment at the sme of saln was \\( \\$ 1,200,000 \\) cost loss \\( \\$ 400,000 \\) accumulafed depreciation. - Boh corapantes have December 31 year endi - The residual value of the asset will be \\( \\$ 430,291 \\), The expected payout under the guarantee is 50 Required