Question: BBB Leasing purchased a machine for $290,000 and leased it to Jack Tupp Auto Repair on January 1, 2021. Lease description: Quarterly rental payments- $16,643

BBB Leasing purchased a machine for $290,000 and leased it to Jack Tupp Auto Repair on January 1, 2021.

Lease description:

Quarterly rental payments- $16,643 at beginning of each period

Lease term- 5 years (20 quarters)

No residual value; no BPO

Economic life of machine- 5 years

Implicit interest rate- 6%

Fair value of asset- $290,000

What is the balance in the lease payable account after the April 1, 2021, lease payment?

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