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Tamarisk Leasing Company signs an agreement on January 1, 2017, to lease equipment to Madison Company. The following information relates to this agreement. 1. The
Tamarisk Leasing Company signs an agreement on January 1, 2017, to lease equipment to Madison Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 7 years with no renewal option. The equipment has an estimated economic ife of 7 years. 2 The cost of the asset to the lessor is $300,000. The fair value of the asset at January 1, 2017, is $300,000. 3- The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $11,000, none of 4. The agreement requires equal annual rental payments, beginning on January 1, 2017. 5. Collectibility of the lease payments by Tamarisk is probable. which is guaranteed. Assuming the lessor desires a 8% rate of return on its investment, calculate the amount of the annual rental pa as displayed in the factor table provided and the final answer to O decimal place yment required. (For calculation purposes, use s s e.g. 5,275.) Amount of the annual rental payment s
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