Recording Sales$-$Type Lease, Unguaranteed Residual Value$$Lessor

Flint Company leased equipment to Land Company for a $$ve$-$year period. Flint paid $$131,502$ for the equipment, which equals its current carrying value $($with estimated useful life of $$ve years$).$ The lease commenced on January $1$ of Year $1.$ Flint uses a target rate of return of $8\%$ in all lease contracts. The $$rst payment was received on January $1$ of Year $1,$ and Flint$$s accounting periods end on December $31.$ The equipment reverts to Flint at the end of the lease term, at which time Flint estimates that the equipment will have an unguaranteed residual value of $$5,600.$ Hint: Underlying asset$$s carrying value equals its fair value at lease commencement.

a$.$ Compute the annual payment calculated by the lessor.

$$ Note: Round answer to the nearest dollar.

$$ Note: Do not use a negative sign with your answer.