Teal Leasing Company agrees to lease equipment to Flint Corporation on January 1, 2020. The following information relates to the

lease agreement.

The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.

The cost of the machinery is $483,000, and the fair value of the asset on January 1, 2020, is $757,000.

At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $55,000. Flint estimates

that the expected residual value at the end of the lease term will be 55,000. Flint amortizes all of its leased equipment on a

straight-line basis.

The lease agreement requires equal annual rental payments, beginning on January 1, 2020.

The collectibility of the lease payments is probable.

Teal desires a 10% rate of return on its investments. Flint's incremental borrowing rate is 11%, and the lessor's implicit rate is

unknown.

Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the

final answer to O decimal places e.g. 58.972.)

Teal Leasing Company agrees to lease equipment to Flint Corporation on January 1, 2020. The following information relates to the lease agreement. 1. 2. 3. 4. 5. 6. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. The cost of the machinery is $483,000, and the fair value of the asset on January 1, 2020, is $757,000. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $55,000. Flint estimates that the expected residual value at the end of the lease term will be 55,000. Flint amortizes all of its leased equipment on a straight-line basis. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. The collectibility of the lease payments is probable. Teal desires a 10% rate of return on its investments. Flint's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) Click here to view factor tables. (c) Your answer is incorrect. Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,972.) Present value of minimum lease payments List of Accounts $