On January 2, 2025, Ivanhoe Leasing Company leases equipment to Flint Co. with 5 equal annual payments of $150000 each. payable beginning January 2, 2025. There is expected residual of $25000 but it is not guaranteed. Flint's incremental borrowing rate is 9%, however, it knows that Ivanhoe's implicit interest rate is 8%. The lease is appropriately classified as a finance/sales- type lease. What will Ivanhoe record as the sales price of the asset? PV Annuity Due 8%, 5 periods 4.31213 9%, 5 periods 4.23972 PV Ordinary Annuity 3.99271 3.88965 PV Single Sum 0.68058 0.64993

On January 2, 2025, Ivanhoe Leasing Company leases equipment to Flint Co. with 5 equal annual payments of $150000 each, payable beginning January 2, 2025. There is expected residual of $25000 but it is not guaranteed. Flint's incremental borrowing rate is 9%, however, it knows that Ivanhoe's implicit interest rate is 8%. The lease is appropriately classified as a finance/salestype lease. What will Ivanhoe record as the sales price of the asset