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Zhang Company leased equipment from Mann Industries. The lease agreement qualifies as a finance lease and requires annual lease payments of $ 4 9 ,
Zhang Company leased equipment from Mann Industries. The lease agreement qualifies as a finance lease and requires annual lease payments of $ over a fiveyear lease term also the asset's useful life with the first payment on January the beginning of the lease. The interest rate is The asset being leased cost Mann $ to produce.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Determine the price at which the lessor is "selling" the asset present value of the lease payments
What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December ignore taxes
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Determine the price at which the lessor is "selling" the asset present value of the lease payments
Note: Round your intermediate and final answers to the nearest whole dollar.
tablePV factors based onTable or Calculator function:,Lease Payment,
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