SHOW SOLUTION Beeler Bank recently leased machinery to Fillion Company. The $8-$year lease contract requires rental payments of $$170,000$ due on January $1$ of each year. The lease is classified as a finance lease for the lessee and a sales$-$type lease for the lessor. Fillion knows Beeler Bank's $11\%$ implicit rate. There is a $$26,000$ residual value. Compute the net investment in the lease for Beeler Bank and the lease liability and right$-$of$-$use asset for the Fillion Company assuming that the residual value is not guaranteed by the lessee or by a third party.

Future Value of $$1$ table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table

Present Value of $$1$ table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table

$($Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X$.$XXXXX$.$ Round your final answers to the nearest whole dollar.$)$

Net investment in the lease for Beeler Bank

Lease liability and right$-$of$-$use asset for Fillion Company

$\backslash$table$[[$$$,982,355],[$$$,971,073]]$