Glade Company leases specialized computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease term, and the leases do not contain bargain purchase options. Glade wishes to earn 8% interest on a five-year lease of equipment with a fair value of $323,400. All of Glade's leases require annual payments beginning on the first day of the lease. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: Compute the gross lease payments receivable and total amount of interest revenue that Glade will earn over the life of the lease. (Round your intermediate calculations and final answers to 2 decimal places.)
Glade Company leases specialized computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease term, and the leases do not contain bargain purchase options. Glade wishes to earn 8% interest on a five-year lease of equipment with a fair value of $323,400. All of Glade's leases require annual payments beginning on the first day of the lease. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.)
Required:
Compute the gross lease payments receivable and total amount of interest revenue that Glade will earn over the life of the lease. (Round your intermediate calculations and final answers to 2 decimal places.)
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