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In 2019 Pharoah Trucking Company negotiated and closed a long-term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were erected

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In 2019 Pharoah Trucking Company negotiated and closed a long-term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were erected to the company's specifications on land owned by the company, On January 1, 2020, Pharoah Trucking took possession of the lease properties. Although the terminals have a composite useful life of 40 years, the non-Cncetable lease runs for 20 years from January 1, 2020, with a bargain purchase option available upon expiration of the lease. The 20-year lease is effective for the period January 1, 2020, through December 31, 2039. Rental payments of S928,000 are payable to the lessor on January 1 of each of the first 10 years of the lease term Advance rental payments of $371.200 are due on January 1 for each of the last 10 years of the lease. The company has an option to purchase all of these leased facilities for $1on December 31, 2039. The lease was negotiated to assure the lessor a 6% rate of return. Selected present value factors are as follows For an ordinary Annuity of $1 at 6% Periods For $1 at 6% 1 0.943396 0.943396 2 1833393 0.889996 Selected present value factors are as follows. For an Ordinary Annuity of $1 at 6% Periods For $1 at 6% 1 0.943396 0.943396 2. 1.833393 0.889996 8 6.209794 0.627412 9 6.801692 0.591898 10 7.360087 0.558395 19 11.158116 0.330513 20 11.469921 0.311805 Prepare a schedule to compute for Pharoah Trucking the present value of the terminal facilities and related obligation at January 1, 2020. (Round answers to O decimal places, eg. 125.) PHAROAH TRUCKING COMPANY Schedule to Compute the Discounted Present Value of Terminal Facilities and the Related Obligation January 1, 2020 Present value of first 10 payments: Immediate payment Present value of an ordinary annuity Present value of last 10 payments Fits Bayment Present Value of an ordinary annuity Present value of last 10 payments: First payment Present value of an ordinary annuity Present value of last 10 payments Discount to January 1, 2020 Discounted present value of terminal facilities and related obligation

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