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Your answer is incorrect. On December 31, 2019, Sunland Company leased machinery from Terminator Corporation for an agreed upon lease term of 3 years. Sunland
Your answer is incorrect. On December 31, 2019, Sunland Company leased machinery from Terminator Corporation for an agreed upon lease term of 3 years. Sunland agreed to make annual lease payments of $19,000, beginning on December 31, 2019. The expected residual value of the machinery at the end of the lease term is $9,500. Sunland guarantees a residual value of $9,500 at the end of the lease term, which equals the expected residual value of the machinery. What amount will Sunland record as its lease liability if the expected residual value at the end of the lease term is $5,500 and Sunland guarantees a residual of $9,500. Its incremental borrowing rate is 10% and the implicit rate of the lease is unknown? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, eg. 5,275.) Click here to view factor tables. Lease liability $ 57182.09
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