The following facts pertain to a noncancelable lease agreement between Sandhill Leasing Company and Teal Company, a lessee. May 1, 2017 Inception date: Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $21,763.30 $4,200 5 years 10 years $61,000 $95,000 9% 9 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. Click here to view factor tables Compute the amount of the lease receivable at the inception of the lease. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 16.25.) Lease receivable at inception Table 6.2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVFn,i = atom = (1+i)* (n) Periods 2% 24% 3% 4% 5% 6% 98039 97561 97087 96154 95238 94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 96117 95181 94260 92456 90703 9423292860 91514 88900 86384 92385 90595 8884985480 82270 90573 88385 86261 82193 78353 .88797 86230 83748 79031 74622 .87056 84127 81309 75992 71068 .85349 82075 78941 73069 .67684 83676 80073 76642 70259 .64461 .82035 78120 74409 67556 61391 .80426 76214 72242 64958 58468 .78849 74356 70138 62460 55684 .773037254268095 60057 53032 .75788 70773 66112 57748 50507 .74301 69047 64186 55526 48102 .72845 6736262317 53391 45811 .71416 65720 60502 51337 43630 .70016 64117 58739 49363 41552 .68643 62553 57029 47464 39573 .67297 61027 55368 45639 37689 .65978 59539 53755 43883 35894 .64684 58086 52189 42196 34185 49697 46884 44230 .41727 39365 37136 .35034 .33051 .31180 29416 .27751 Table 6.5 PRESENT VALUE OF AN ANNUITY DUE OF 1 1- PVF-ADni = 1+- 24% 3% (11) Periods 2% 4% 5% 6% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039197561 197087 1.96154 1.95238 1.94340 2.94156 3.88388 2.92742 3.85602 2.91347 2.88609 2.85941 3.82861 3.775093.72325 2.83339 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.417196.24214 6.075695.91732 7.471997.34939 7.23028 7.00205 6.78637 6.58238 8.32548 8.17014 9.16224 8.97087 8.01969 8.78611 7.73274 8.43533 7.46321 8.10782 7.20979 7.80169 9.98259 9.75206 9.53020 9.11090 8.72173 8.36009 10.78685 10.51421 10.25262 9.76048 9.30641 8 .88687 11.57534 11.25776 10.95400 10.38507 9.863259.38384 12.34837 11.98319 11.63496 10.98565 10.39357 9 .85268 13.10625 12.69091 12.29607 11.56312 10.89864 10.29498 13.84926 13.38138 12.93794 12.11839 11.37966 10.71225 14.57771 14.05500 13.56110 12.65230 11.83777 11.10590 15.29187 14.71220 14.16612 13.16567 12.27407 11.47726 15.99203 15.35336 14.75351 13.65930 12.6895911.82760 16.67846 15.97889 15.32380 14.13394 13.08532 12.15812 17.35143 16.58916 15.87747 14.59033 13.46221 12.46992 18.01121 17.18455 16.41502 15.02916 13.82115 12.76408 21 22 The following facts pertain to a noncancelable lease agreement between Sandhill Leasing Company and Teal Company, a lessee. May 1, 2017 Inception date: Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $21,763.30 $4,200 5 years 10 years $61,000 $95,000 9% 9 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. Click here to view factor tables Compute the amount of the lease receivable at the inception of the lease. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 16.25.) Lease receivable at inception Table 6.2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVFn,i = atom = (1+i)* (n) Periods 2% 24% 3% 4% 5% 6% 98039 97561 97087 96154 95238 94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 96117 95181 94260 92456 90703 9423292860 91514 88900 86384 92385 90595 8884985480 82270 90573 88385 86261 82193 78353 .88797 86230 83748 79031 74622 .87056 84127 81309 75992 71068 .85349 82075 78941 73069 .67684 83676 80073 76642 70259 .64461 .82035 78120 74409 67556 61391 .80426 76214 72242 64958 58468 .78849 74356 70138 62460 55684 .773037254268095 60057 53032 .75788 70773 66112 57748 50507 .74301 69047 64186 55526 48102 .72845 6736262317 53391 45811 .71416 65720 60502 51337 43630 .70016 64117 58739 49363 41552 .68643 62553 57029 47464 39573 .67297 61027 55368 45639 37689 .65978 59539 53755 43883 35894 .64684 58086 52189 42196 34185 49697 46884 44230 .41727 39365 37136 .35034 .33051 .31180 29416 .27751 Table 6.5 PRESENT VALUE OF AN ANNUITY DUE OF 1 1- PVF-ADni = 1+- 24% 3% (11) Periods 2% 4% 5% 6% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039197561 197087 1.96154 1.95238 1.94340 2.94156 3.88388 2.92742 3.85602 2.91347 2.88609 2.85941 3.82861 3.775093.72325 2.83339 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.417196.24214 6.075695.91732 7.471997.34939 7.23028 7.00205 6.78637 6.58238 8.32548 8.17014 9.16224 8.97087 8.01969 8.78611 7.73274 8.43533 7.46321 8.10782 7.20979 7.80169 9.98259 9.75206 9.53020 9.11090 8.72173 8.36009 10.78685 10.51421 10.25262 9.76048 9.30641 8 .88687 11.57534 11.25776 10.95400 10.38507 9.863259.38384 12.34837 11.98319 11.63496 10.98565 10.39357 9 .85268 13.10625 12.69091 12.29607 11.56312 10.89864 10.29498 13.84926 13.38138 12.93794 12.11839 11.37966 10.71225 14.57771 14.05500 13.56110 12.65230 11.83777 11.10590 15.29187 14.71220 14.16612 13.16567 12.27407 11.47726 15.99203 15.35336 14.75351 13.65930 12.6895911.82760 16.67846 15.97889 15.32380 14.13394 13.08532 12.15812 17.35143 16.58916 15.87747 14.59033 13.46221 12.46992 18.01121 17.18455 16.41502 15.02916 13.82115 12.76408 21 22