Exercise $15-15($Algo$)$ Sales$-$type lease; lessor; income statement effects $[$LO $15-3]$

Zhang Company leased equipment from Mann Industrles. The lease agreement qualfies as a finance lease and requires annual lease

payments of $$47,847$ over a slx$-$year lease term $($also the asset's useful life$),$ with the first payment on January $1,$ the beginning of the

lease. The interest rate is $5\%.$ The asset being leased cost Mann $$205,000$ to produce.

Note: Use tables, Excel, or a financlal calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Determine the price at which the lessor is "selling" the asset $($present value of the lease payments$).$

What would be the amounts related to the lease that the lessor would report in Its income statement for the year ended

December $31($Ignore taxes$)?$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Determine the price at which the lessor is "selling" the asset $($present value of the lease payments$).$

Note: Round your intermediate and final answers to the nearest whole dollar.Exercise $15-15($Algo$)$ Sales$-$type lease; lessor; income statement effects $[$LO $15-3]$

Zhang Company leased equipment from Mann Industrles. The lease agreement qualifies as a finance lease and requires annual lease

payments of $$47,847$ over a slx$-$year lease term $($also the asset's useful life$),$ with the first payment on January $1,$ the beginning of the

lease. The interest rate is $5\%.$ The asset being leased cost Mann $$205,000$ to produce.

Note: Use tables, Excel, or a financlal calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Determine the price at which the lessor is "selling" the asset $($present value of the lease payments$).$

What would be the amounts related to the lease that the lessor would report in its Income statement for the year ended

December $31($Ignore taxes$)?$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

What would be the amounts related to the lease that the lessor would report in its income statement for the year ended

December $31($ignore taxes$)?$

Note: Input decreases to income as negative amounts. Round your intermediate and final answers to the nearest whole dollar.Table $6$ Present Value of an Annuity Due of $$1$

PVAD $=(\frac{1-(\frac{1}{1+i}n)}{i})(1+i)$

$\backslash$table$[[\frac{n}{i},1\mathrm{.}0\%,1\mathrm{.}5\%,2\mathrm{.}0\%,2\mathrm{.}5\%,3\mathrm{.}6\%,3\mathrm{.}5\%,4\mathrm{.}0\%,4\mathrm{.}5\%,5\mathrm{.}0\%,5\mathrm{.}5\%,6\mathrm{.}0\%,7\mathrm{.}0\%,8\mathrm{.}0\%,9\mathrm{.}0\%,10\mathrm{.}0\%,11\mathrm{.}0\%,12\mathrm{.}0\%,20\mathrm{.}0\%$