On January 1, 2021, Entity A leases out an equipment to Entity B. Information on the lease is as follows: Lease term - 3 years; Gross Investment in the lease is 502,500; Interest rate implicit in the lease is 10%. The lease provides for the transfer of ownership of the equipment to the lessess at the end of the lease term. The PV of ordinary annuity of P1 @ 10%, n=3 is 2.48685. What is the amount of fixed lease payments? *
On January 1, 2021, Entity A leases out an equipment to Entity B. Information on the lease is as follows: Lease term - 3 years; Gross Investment in the lease is 502,500; Interest rate implicit in the lease is 10%. The lease provides for the transfer of ownership of the equipment to the lessess at the end of the lease term. The PV of ordinary annuity of P1 @ 10%, n=3 is 2.48685. What is the amount of fixed lease payments? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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help me answer as soon as possible
![On January 1, 2021, Entity A leases out an
equipment to Entity B. Information on the
lease is as follows: Lease term - 3 years;
Gross Investment in the lease is 502,500;
Interest rate implicit in the lease is 10%. The
lease provides for the transfer of ownership
of the equipment to the lessess at the end
of the lease term. The PV of ordinary
annuity of P1 @ 10%, n=3 is 2.48685. What is
the amount of fixed lease payments? *
Your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac490dc0-0662-49c6-afe4-6ea69122cf0c%2F30448766-7a7f-49c7-ac27-6ee2a5f9663b%2Fo3j3nf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, Entity A leases out an
equipment to Entity B. Information on the
lease is as follows: Lease term - 3 years;
Gross Investment in the lease is 502,500;
Interest rate implicit in the lease is 10%. The
lease provides for the transfer of ownership
of the equipment to the lessess at the end
of the lease term. The PV of ordinary
annuity of P1 @ 10%, n=3 is 2.48685. What is
the amount of fixed lease payments? *
Your answer
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