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Question 25 July 1. beginning July 1, 20x1. The lease qualifies as a finance lease for YOUR Company and a sales-type lease for MY Company.

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Question 25 July 1. beginning July 1, 20x1. The lease qualifies as a finance lease for YOUR Company and a sales-type lease for MY Company. The incremental borrowing rate for YOUR Company is 10%. The lessor's implicit rate is 8%. The carrying value on the books of MY Company is $70.000. The lease term is 8 years. The useful life of the machine is 10 years. The fair value of the machine at the inception of the lease is $100.000. The expected residual value at the end of 8 years is $15.000 and at the end of 10 years is $6,000. The lessee guarantees $9,000 of the salvage value. YOUR Company capitalized the lease at that value, $91,892. What will the book value of the lease liability be at the end of the lease term

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