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Please show work and calculations on getting to answer. Universal Leasing leases electronic equipment to a variety of businesses. The companys primary service is pro-viding

Please show work and calculations on getting to answer.

Universal Leasing leases electronic equipment to a variety of businesses. The companys primary service is pro-viding alternate financing by acquiring equipment and leasing it to customers under long-term sales-type leases. Universal earns interest under these arrangements at a 12% annual rate. The company leased an electronic typesetting machine it purchased for $33,600 to a local publisher, Desktop Inc. on December 31, 2017. The lease contract specified annual payments of $9,315 beginning January 1, 2018, the beginning of the lease, and each December 31 through 2019 (three-year lease term). The publisher had the option to purchase the machine on December 30, 2020, the end of the lease term, for $12,000 when it was expected to have a residual value of $16,000, a sufficient difference that exercise seems reasonably certain.

Please use present value of annuity due factor = 2.69005

Please use present value factor = 0.71178

1. Show how Universal calculated the $9,315 annual lease payments for this sales-type lease.

2. Prepare an amortization schedule that describes the pattern of interest revenue for Universal Leasing over the lease term. 3. Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of the lease term.

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