Sun Bank recently leased machinery to Claude Company. The $8-$year lease contract requires rental payments of $$100,000$ due on January $1$ of each year. The lease is classified as a finance lease for the lessee and a sales$-$type lease for the lessor. Claude knows Sun Bank's $6\%$ implicit rate. There is a $$30,000$ residual value. Compute the net investment in the lease for Sun Bank and the lease liability and right$-$of$-$use asset for the Claude 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

Net investment in the lease for Sun Bank

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