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Recording Operating Lease EntriesLessor On January 1, Lessee Inc. leased equipment at...

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Accounting

Recording Operating Lease EntriesLessor
On January 1, Lessee Inc. leased equipment at an annual payment of $144,668 payable at the beginning of each year for 4 years. The equipment had a fair value of $680,000, a book value of $637,500, and was commonly purchased or leased by customers. The lessor estimates that the equipment has an estimated useful life of 8 years and an estimated residual value of $212,500, not guaranteed by the lessee. Lessors implicit rate is 7.5%, which is unknown to the lessee. The lessees incremental borrowing rate is 8%. The lease does not contain a purchase option or a renewal option. The lessee had no other costs associated with this lease.
Required
a. Recalculate the lessors lease payment.
Note: Round answer to the nearest dollar.
Note: Do not use a negative sign with your answer.

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