Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 21A-7 a-c (Part Level Submission) Grouper Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical
Problem 21A-7 a-c (Part Level Submission) Grouper Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $462,384, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $14,900. The hospital will pay rents of $65,200 at the beginning of each year. Grouper incurred costs of $267,000 in manufacturing the machine and $14,500 in legal fees directly related to the signing of the lease. Grouper has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 9%. Click here to view factor tables (a2) Your answer is partially correct. Try again. Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to o decimal places, e.g. 5,275.) (1) Lease receivable at commencement of the lease 520000 (2) Sales price 462,384 (3) Cost of sales 267,000 Click if you would like to Show Work for this question: Open Show Work Prepare a 10-year lease amortization schedule for Grouper, the lessor. (Round answers to 0 decimal places e.g. 5,275.) GROUPER INC. (Lessor) Lease Amortization Schedule (Annuity due basis, guaranteed residual value) Annual Lease Payment Interest on Recovery of Lease Plus Residual Value Lease Receivable Receivable Beginning of Year Lease Receivable Initial PV $ $ $ $ 1 2 3 4 5 6 7 8 9 10 End of 10
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started