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PROBLEM m Dumont Corporation, 1essor of office purchased a new machine s900000 December 112002, which was delivered the same dayto Finley Company, the lessor The

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PROBLEM m Dumont Corporation, 1essor of office purchased a new machine s900000 December 112002, which was delivered the same dayto Finley Company, the lessor The following information relating to the iease transaction is mailable The leased asset has an estimated useful life of tight years The lease term is seven years. Af the end the lease term, the machine will revert to Damonte at which time it a expected to have residual value of Bone of which is guarannnnd by Dimont's impiait intertst rate is 10i which is known by Finley Finley's incremental borrowing is 12% at December 1.2002. Weth itewor Knd itsee are ealendar -year corporations and depreciare al fued alueu the stright-ine basis lalormation the present value factors is as follows: Preses vilie 31 for seven periods Present value of S1 for seven pemoda at Present valutofin intiairy due of 1 sevm periods at Present annuity date of 1 for seven periods at Compute he tentul usder the lease calu ne fie expense that the lessee record for the year ended December 31 2008 PROBLEM m Dumont Corporation, 1essor of office purchased a new machine s900000 December 112002, which was delivered the same dayto Finley Company, the lessor The following information relating to the iease transaction is mailable The leased asset has an estimated useful life of tight years The lease term is seven years. Af the end the lease term, the machine will revert to Damonte at which time it a expected to have residual value of Bone of which is guarannnnd by Dimont's impiait intertst rate is 10i which is known by Finley Finley's incremental borrowing is 12% at December 1.2002. Weth itewor Knd itsee are ealendar -year corporations and depreciare al fued alueu the stright-ine basis lalormation the present value factors is as follows: Preses vilie 31 for seven periods Present value of S1 for seven pemoda at Present valutofin intiairy due of 1 sevm periods at Present annuity date of 1 for seven periods at Compute he tentul usder the lease calu ne fie expense that the lessee record for the year ended December 31 2008

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