Question 3 of 4 View Policies Show Attempt History < > Current Attempt in Progress 0/5 E: Bridgeport Corporation leased equipment to Metlock, Inc. on January 1, 2025. The lease agreement called for annual rental payments of $851 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 8 years, a fair value of $7,400, a book value of $5,400, and Bridgeport expects a residual value of $4,900 at the end of the lease term. Bridgeport set the lease payments with the intent of earning a 4% return, though Metlock is unaware of the rate implicit in the lease and has an incremental borrowing rate of 6%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is incorrect. What is the amount of the rental payments used in the lease agreement? (Round answer to 0 decimal places, e.g. 5,275.) Rental payments $ eTextbook and Media List of Accounts Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes. (b) The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above. Attempts: 1 of 5 used Submit Answer SUPPORT