Koffman and Sons signed a four-year lease for a forklift on January 1, 2017. Annual lease payments of $1,274, based on an interest rate of 12%, are to be made every December 31, beginning with December 31, 2017.

PV of Annuity of $1

Required:

Refer to the table above for present value factors.

At what amount would the lease obligation be presented on the balance sheet as of December 31, 2017? Round answers to the nearest whole dollar.

Current liability portion	$
Long-term liability portion	$

TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 .93458 98039 1.94156 2 .95238 1.85941 2.72325 94340 1.83339 2.67301 .89286 1.69005 1.80802 .92593 1.78326 2.57710 97087 1.91347 2.82861 3.71710 4.57971 .90909 1.73554 2.48685 3.16987 3 .86957 1.62571 2.28323 2.85498 2.88388 .96154 1.88609 2.77509 3.62990 4.45182 5.24214 2.62432 2.40183 4 3.54595 3.46511 3.38721 3.31213 3.03735 3.80773 4.71346 5 4.21236 4.10020 3.79076 3.60478 3.35216 4.32948 5.07569 6 5.41719 4.35526 4.11141 3.78448 4.76654 5.38929 7 6.23028 6.00205 4.86842 4.56376 4.16042 5.60143 6.47199 7.32548 8.16224 8.98259 8 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 5.78637 6.46321 7.10782 7.72173 9 10 7.01969 7.78611 8.53020 9.25262 9.95400 10.63496 11.29607 4.48732 4.77158 5.01877 5.23371 5.42062 11 12 13 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 11.11839 11.65230 12.16567 12.65930 13.13394 9.78685 10.57534 11.34837 12.10625 12.84926 13.57771 14.29187 14.99203 15.67846 14 4.91732 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 9.71225 10.10590 10.47726 10.82760 11.15812 11.46992 15 16 17 8.30641 8.86325 9.39357 9.89864 10.37966 10.83777 11.27407 11.68959 12.08532 12.46221 13.16300 13.79864 14.37519 14.89813 15.37245 5.97130 6.51523 7.02358 7.49867 7.94269 8.35765 8.74547 9.10791 9.44665 9.76322 10.05909 10.33560 10.59401 11.06124 11.46933 11.82578 12.13711 12.40904 4.96764 5.32825 5.65022 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 11.93794 12.56110 13.16612 13.75351 14.32380 14.87747 15.93692 16.93554 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 8.77154 8.98474 9.16095 9.30657 9.42691 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 10.20074 10.52876 10.80998 11.05108 11.25778 18 5.58315 5.72448 5.84737 5.95423 6.04716 6.12797 6.19823 6.25933 19 20 16.35143 13.59033 22 17.65805 7.64465 12.04158 12.55036 6.35866 6.43377 24 18.91393 26 20.12104 21.28127 22.39646 14.45112 15.24696 15.98277 16.66306 17.29203 17.87684 18.76411 19.60044 28 7.78432 7.89566 7.98442 8.05518 13.00317 13.40616 13.76483 6.49056 6.53351 6.56598 30