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Teal Mountain Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1.

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Teal Mountain Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $291,000. The fair value of the asset at January 1, 2020, is $291,000. 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 $29,100, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1,2020 . 5. Collectibility of the lease payments by Teal Mountain is probable: Click here to view factor tables. (a) Assuming the lessor desires a 11% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to 0 decimal places e. 5,275.) Amount of the annual rental payment $

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