How to explain the mark place?why dont use 4000*pva(5 year,10%)?

Example 3 - Lessor's accounting for a finance lease Manufacturers/dealers lease Using the following information, prepare the journal entries necessary to record the lease in the books of the manufacturer (lessor) for the period 1st July 2019 through to 30th June 2021, in accordance with the provisions of AASB 16, assuming classification as a finance lease .Lessor's carrying amount of machine at 1st July 2019 $14,000 Usual selling price of this machine at 1st July 2019 (fair value) $18,853 Lease term Useful life of asset Lessee guaranteed full residual value at end of lease term Annual lease payments, commencing 1st July 2019 The lease is non cancellable & the interest rate implicit in the lease is 10%pa. 5 years 6 years $3,500 $4,000 37 Example 3 - Continued Lessor's recognition & measurement - Manufacturer/dealer finance lease Lease rece Measurat present value of all lease pay . NPV: $4,000 + ($4,000 x PVIFA, 10%,4 [3.17]) + (S 1,500 x PVIF,1096,5 [0.621]) idual value $18,853 Sales Reven Measured at lessor ot gu $18,853) or fair value of goods ($18,853) Cost of goods sold: Measured at carrying amount ($14,000) less PV of unguaranteed residual value (Nil)