On January 1, Keunho Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to Keunho The equipment cost Keunho $270,000 and has an expected useful life of six years. Its normal sales price is $270,000. The residual value after four years is $100,000 Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 9% What is the amount of the annual lease payments? Note: Round your answer to the nearest whole dollar amount. The present value of $t: n-4,/9% is 0.70843 The present value of an ordinary annuity of $t: n-4,/9% is 3.23972. The present value of an annuity due of $t: n-4,/-9% is 3.53129, Multiple Choice $54166 $56.398

On January 1, Keunho Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to Keunho The equipment cost Keunho $270,000 and has an expected useful life of six years. Its normal sales price is $270,000. The residual value after four years is $100,000 Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 9% What is the amount of the annual lease payments? Note: Round your answer to the nearest whole dollar amount. The present value of $t: n-4,/9% is 0.70843 The present value of an ordinary annuity of $t: n-4,/9% is 3.23972. The present value of an annuity due of $t: n-4,/-9% is 3.53129, Multiple Choice $54166 $56.398

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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