Plessings Company leased a piece of machinery to Banana, Inc. on January 1, 2019. The lease is
Fantastic news! We've Found the answer you've been seeking!
Question:
Plessings Company leased a piece of machinery to Banana, Inc. on January 1, 2019. The lease is correctly classified as a sales-type lease. Plessings will receive three annual lease payments of $ 20,900, with the first one received on January 1, 2019. There is no guaranteed or unguaranteed residual value. The fair value of the machine is $50,000 and Plessings incurs initial direct costs of $5,000. What is the implicit rate assuming the initial direct costs are expensed?
Posted Date: