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On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor.

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On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. Annual lease payments are $16,700 due on December 31 of each year, calculated by the lessor using a 6% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $50,100 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be $47,700. What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee? (Round your answer to the nearest whole dollar.) The present value of $1: n= 4, /= 6% Is 0.79209. The present value of an ordinary annulty of $1: 7 = 4, / = 6% Is 3.46511. The present value of an annuity due of $1: n = 4, /= 6% Is 3.67301. Multiple Choice O $2.267 O $2.381 O $1,901 O $3.307

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