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solve lease liability Exercise 21A-9a-b (Part Level Submission) Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease

image text in transcribedsolve lease liability

Exercise 21A-9a-b (Part Level Submission) Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year penod and requires equal annual payments of $33,300 at the beginning of each year. The first payment s received on January 1 2017, Oriole had purchased the machine during 2016 for $150,000. Collectibility of lease payments by Oriole is probable. Oriole set the annual rental to ensure a 6% rate of return. The machine has an econamic life of 10 years with no residual value and reverts to Oriole at the termination of the lease. Assume that Dexter Corporation does not know the rate implicit in the lease used by Oriole, and Dexter's incremental borrowing rate is 8%. In addition, assume that Dexter incurs initial direct costs of $12,000 Click here to view the factor table. Your answer is partially correct. Try again. Compute the amount of the lease liability and right-of-use asset for Dexter. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.) Lease liability 173372 Right-of-use asset 218672 Click if you would like to Show Work for this question: Qpen Show work Attempts: 2 of 3 used SAVE FOLTSDHASWER

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