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Problem 21A-10 a2-c (Part Level Submission) Coronado Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Whispering
Problem 21A-10 a2-c (Part Level Submission) Coronado Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Whispering Airlines for a period of 10 years. The normal selling price of the equipment is $262,235, and its unguaranteed residual value at the end of the lease term is estimated to be 21,000, whispering will pay annual payments of $37,600 at the beginning of each year. Coronado incurred costs of $183,700 in manufacturing the equipment and $4,000 in sales commissions in Closing the lease Coronado has determined that the collectibility of the ease payments Sprobable and that the cit interest rate s10% whispering Airlines has an incremental borrowing rate of 10%. Click here to view the factor table (a2) Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,971.) The amount of the initial lease liability Attempts: 0 of 5 used
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