On December $31,2019,$ Skysong Corporation signed a $5-$year, non$-$cancelable lease for a machine. The terms of the

lease called for Skysong to make annual payments of $$8,476$ at the beginning of each year of the lease, starting

December $31,2019.$ The machine has an estimated useful life of $6$ years and a $$5,200$ unguaranteed residual value. The

machine reverts back to the lessor at the end of the lease term. Skysong uses the straight$-$line method of depreciation

for all of its plant assets. Skysong's incremental borrowing rate is $9\%,$ and the lessor's implicit rate is unknown.

Click here to view factor tables.

$($a$)$

$$ Your answer is correct.

What type of lease is this?

This is a$/$an

$|$ lease.

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Attempts: $2$ of $3$ used

Question Part Score

$($b$)$

Compute the present value of the lease payments. $($For calculation purposes, use $5$ decimal places as

displayed in the factor table provided and round final answer to $0$ decimal places e$.$g$.5,275.$

Present value of the lease payments

$

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