An asset costs $$675,000.$ The CCA rate for this asset is $25\%.$ The asset$$s useful life is two years after which it will be worth $$50,000.$ The corporate tax rate on ordinary income is $35\%.$ The interest rate on risk$-$free cash flows is $10\%.$ Assume payments are made at the end of the year.

a$.$ What set of lease payments will make the lessee and the lessor equally well off, assuming payments are made at the end of the year? $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit $"$$$"$ sign in your response.$)$

Before tax payment $ $281,949\mathrm{.}40$ Numeric Response $1.$Edit Unavailable. $281,949\mathrm{.}40$ incorrect.

b$.$ Show the general condition that will make the value of a lease to the lessor the negative of the value to the lessee.

multiple choice

TLessor $>$ T$>$Lessee

TLessor $=$ T$>$Lessee Correct

TLessor $<$ T$>$Lessee

c$-1.$ Assume that the lessee pays no taxes. What would the lease payment have to be for lessee to be indifferent to the lease? $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit $"$$$"$ sign in your response.$)$

Indifference lease payment $ $388,928\mathrm{.}57$ Numeric Response $2.$Edit Unavailable. $388,928\mathrm{.}57$ incorrect.

c$-2.$ Assume that the lessor is in the $35\%$ tax bracket. What would the lease payment have to be for lessor to be indifferent to the lease? $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit $"$$$"$ sign in your response.$)$

Indifference lease payment $ $281,949\mathrm{.}40$