Grouper Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $295,230, and its unguaranteed residual value at the end of the lease term is estimated to be $21,600. National will pay annual payments of $40,900 at the beginning of each year. Grouper incurred costs of $173,200 in manufacturing the equipment and $3,800 in sales commissions in closing the lease. Grouper has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 9%. Click here to view factor tables.

(a)

Discuss the nature of this lease in relation to the lessor. This is a finance leaseoperating leasesales-type lease. Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places, e.g. 5,275.)

(1)		Lease receivable		$
(2)		Sales price		$
(3)		Cost of sales		$