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Sunland Company manufactures a check - in kiosk with an estimated economic life of 1 2 years and leases it to Coronado Airlines for a
Sunland Company manufactures a checkin kiosk with an estimated economic life of years and leases it to Coronado Airlines for a period of years. The normal selling price of the equipment is $ and its unguaranteed residual value at the end of the lease term is estimated to be $ Coronado will pay annual payments of $ at the beginning of each year. Sunland incurred costs of $ in manufacturing the equipment and $ in sales commissions in closing the lease. Sunland has determined that the collectibility of the lease payments is probable and that the implicit interest rate is Coronado Airlines has an incremental borrowing rate of Click here to view factor tables. a Discuss the nature of this lease in relation to the lessee. This is a Compute the amount of the initial lease liability. Round present value factor calculations to decimal places, es and the final answer to odecimal place eg The amount of the initial lease liability $
Sunland Company manufactures a checkin kiosk with an estimated economic life of years and leases it to Coronado Airlines for a period of years. The normal selling price of the equipment is $ and its unguaranteed residual value at the end of the lease term is estimated to be $ Coronado will pay annual payments of $ at the beginning of each year. Sunland incurred costs of $ in manufacturing the equipment and $ in sales commissions in closing the lease. Sunland has determined that the collectibility of the lease payments is probable and that the implicit interest rate is Coronado Airlines has an incremental borrowing rate of
Click here to view factor tables.
a
Discuss the nature of this lease in relation to the lessee.
This is a
Compute the amount of the initial lease liability. Round present value factor calculations to decimal places, es and the final answer to odecimal place eg
The amount of the initial lease liability $
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