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Please help with the following problem, I am having trouble with getting the correct answer.
Exercise 21-8 {Part Leuel Submission]The following facts pertain to a noncanoeiahie lease agreement between Bramble Leasing Company and Sunland Company, a lessee. Inception date: l-lal.r 1, 201?Annual lease payment due at the beginning ofeach year, beginning with May 1r 201? $24,084.20Bargain-purchase option price at end of lease term $3.200Lease tenn 5 YearsEconomic life of leased equipment 10 veersLessor’s cost $69,000 l}Fair value of asset at May 1. 201? $101,000Lessors implicit rate 11 “ii:Lossee’s incremental borrowing rate 11 iii: The colledibility of the lease pawnents is reasonably predictable. and there are no important uncertainties surrounding the costs vet to be incurred by the lessor. The lessee assumes responsibility for all executonr costs.The expected residual value of the equipment at the end of 5 (10) 1rears is $12,900 ($0). . . i v [ti Prepare a lease amortization schedule for Sunland liornnan’iI for the Sdrear lease term. (Round present value factor calculations to 5 decimalnlacesl. 29. 1.25126 and Round answers to 2 decimal’ places.- en.1525.} SUNLAND COMPANY l assee] Lease Amortization _ eduleAnnual Leasel’airlient Plus Inurahn Reducfionollease Date m Liahiitv lnbrily lease LiabilityE 5 $ $ $ 101.001:sun? 24mm 24,034.29 36515.35h! 18 24,094.205111’19 24.094205l1f20 24.991205m21 24mm41′ 3W1? ma 5 $ $
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