Oriole Inc., which uses IFRS, manufactures an X$-$ray machine with an estimated life of $12$ years and leases it to SNC Medical Centre for

a period of $10$ years. The machine's normal selling price is $$339,947,$ and the lessee guarantees a residual value at the end of the lease

term of $$16,000.$ The medical centre will pay rent of $$46,000$ at the beginning of each year and all maintenance, insurance, and taxes.

Oriole incurred costs of $$216,000$ in manufacturing the machine and $$14,000$ in negotiating and closing the lease. Oriole has

determined that the collectibility of the lease payments is reasonably predictable, that there will be no additional costs incurred, and

that its implicit interest rate is $8\%.$

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

$($a$)$

Using $(1)$ PV tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the PV of the lease payments and guaranteed residual

value under the lease. $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

PV of the lease payments and unguaranteed residual value $