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Kingbird Company manufactures a check - in kiosk with an estimated economiclife of 1 2 years and leases it to National Airlines for a period
Kingbird Company manufactures a checkin kiosk with an estimated economiclife of years and leases it to National Airlines for a period of years. The normal selling price of the equipment is $ and its unguaranteed residual value at the end of the lease term is estimated to be $ National will pay annual payments of $ at the beginning of each year. Kingbird incurred costs of $ in manufacturing the equipment and $ in sales commissions in closing the lease. Kingbird has determined that the collectibility of the lease payments is probable and that the implicit interest rate is
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Your answer is partially correct.
Discuss the nature of this lease in relation to the lessor.
This is a
Compute the amount of each of the following items. Round present value factor calculations to decimal places, es and the finol answers to odecinal ploces, es
Lease receivable i $
Sales price s
Cost of sales $
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