Oriole Company, a machinery dealer, leased a machine to Pharoah Corporation on January 1, 2025. The lease is for an 8-year period and requires equal annual payments of $31,144 at the beginning of each year. The first payment is received on January 1, 2025. Oriole had purchased the machine during 2024 for $123,000. Collectibility of lease payments by Oriole is probable. Oriole set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Oriole at the termination of the lease. Click here to view factor tables. (a) Your answer is incorrect. Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Amount of the lease receivable $ 138402 TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) PVFn = 1 (1 + i)" = (1 + i)" (n) Periods 2% 2% 3% 4% 5% 6% 12345 .98039 .97561 .97087 .96154 .95238 .94340 .96117 95181 .94260 .92456 .90703 .89000 .94232 .92860 .91514 .88900 .86384 .83962 .92385 .90595 .88849 .85480 .82270 .79209 5 .90573 .88385 .86261 .82193 .78353 .74726 10 68419 .88797 .86230 .83748 .79031 .74622 .70496 7 .87056 .84127 .81309 .75992 .71068 .66506 .85349 .82075 .78941 .73069 .67684 .62741 .83676 .80073 .76642 .70259 .64461 .59190 .82035 .78120 .74409 .67556 .61391 55839 12345 67602 11 .80426 .76214 .72242 .64958 .58468 .52679 .78849 .74356 .70138 .62460 .55684 .49697 .77303 .72542 .68095 .60057 .53032 .46884 .75788 .70773 .66112 .57748 .50507 .44230 .74301 .69047 .64186 .55526 .48102 .41727 16 .72845 .67362 .62317 .53391 .45811 .39365 17 .71416 .65720 .60502 .51337 .43630 .37136 18 .70016 .64117 .58739 .49363 .41552 .35034 19 .68643 .62553 .57029 .47464 .39573 .33051 .67297 .61027 .55368 45639 .37689 31180 2222 22222 21 .65978 .59539 .53755 .43883 .35894 29416 .64684 .58086 .52189 .42196 .34185 27751 23 .63416 .56670 .50669 .40573 .32557 26180 24 .62172 .55288 .49193 .39012 .31007 24698 25 .60953 .53939 .47761 .37512 .29530 23300 26 .59758 .52623 .46369 .36069 .28124 21981 27 .58586 .51340 .45019 .34682 .26785 20737 28 .57437 .50088 .43708 .33348 .25509 .19563 29 .56311 .48866 .42435 .32065 .24295 .18456 30 .55207 .47674 .41199 .30832 .23138 17411 31 .54125 .46511 .39999 .29646 .22036 .16425 34 35 38 39 333333333 32 .53063 .45377 .38834 .28506 .20987 .15496 .52023 .44270 .37703 .27409 .19987 .14619 .51003 .43191 .36604 .26355 .19035 .13791 .50003 .42137 .35538 .25342 .18129 .13011 36 .49022 .41109 .34503 .24367 .17266 .12274 37 .48061 .40107 .33498 .23430 .16444 .11579 .47119 .39128 .32523 .22529 .15661 .10924 .46195 .38174 .31575 .21662 .14915 .10306 40 .45289 .37243 .30656 .20829 .14205 .09722 TABLE 6.2 Present Value of 1 (n) 8% 9% 10% 11% 12% 15% Periods .92593 .91743 .90909 .90090 .89286 .86957 .85734 .84168 .82645 .81162 .79719 .75614 .79383 .77218 .75132 .73119 .71178 .65752 123