Show Attempt History Current Attempt in Progress Waterway 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 $524,166, and its guaranteed residual value at the end of the non- cancelable lease term is estimated to be $16,500. The hospital will pay rents of $63,400 at the beginning of each year. Waterway incurred costs of $258,000 in manufacturing the machine and $14,900 in legal fees directly related to the signing of the lease. Waterway has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Click here to view factor tables. (a) Your answer is correct. Discuss the nature of this lease in relation to the lessor. The nature of this lease in relation to the lessor is sales-type lease Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to O decimal places, eg 5,275.) (1) Lease receivable at commencement of the lease $ (2) Sales price (3) Cost of sales eTextbook and Media Solution List of Accounts 524166 $ 524166 $ 258000 Attempts: 3 of 3 used (b) Prepare a 10-year lease amortization schedule for Waterway, the lessor. (Round answers to O decimal places e.g. 5.275.) WATERWAY INC. (Lessor) Lease Amortization Schedule (Annuity due basis, guaranteed residual value) Annual Lease Payment Plus Residual Value Save for Later $ Interest on Lease Receivable $ $ Recovery of Lease Receivable $ Lease Receivable Attempts: 0 of 3 used Submit Answer