Problem 16-31

Koss Leasing requires a 14 percent return on its investments. It is prepared to lease you a truck for two years, provided that it can achieve this return. The lease payments are to be made at the beginning of the year. The truck, which has a useful economic life of six years, cost Koss $60,000. Its estimated value in two years is $17,000. The CCA rate is 30 percent, and Kosss tax rate is 25 percent.

Calculate the annual lease payment required by Koss Leasing. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)