Windsor Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole...
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Windsor Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement 1 2 3 The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years The cost of the asset to the lessor is $230.000. The fair value of the asset at January 1, 2020, is $230,000 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 $24,339, none of which is guaranteed. The agreement requires equal annual rental payments beginning of January 1, 2020, Collectibility of the lease payments by Windsor is probable, 4 5 X Your answer is incorrect. Assuming the lessor desires a 12% 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 decimal places eg. 5,275.) $ 110278 Amount of the annual rental payment
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