Exerctse $5-34($Aigo$)$ Lessor's innal direct costs, sales$-$type lease $[$LO$15-2,15-7]$

Teme of a lease agreement and related facts were as followe:

a incremental costs of commisslons for brokering the lease and consummating the completed lease trancaction incores by the lessor were $$4,583.$

a$.$ The reail cash seling price of the leased asset was $$540,000.$ Its useful iffe was three years with no realdual value:

C$.$ The lease term was threc years and the lessor paid $$540,000$ to acquire the asset.

d$.$ Annual lease payments at the beginning of each year were $$199,077.$

a Lessor's implict rate when calculating annual rental payments wss $11\%.$

Note Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ PVA of $$1,$ PVA of $$1,$ PVAD of $$1$ and PVAD of $$1)$

Required:

Enepart the sppropriate entries for the lessor to record the lease and related payments at ita beginning, January $1\mathrm{.}2021.$

Caiculate the effective rate of interest revenue after odjusting the net investment by intis direct costs.

Fecard any entryin necessary on December $31,2024,$ the fiscsl yearend.

Note: Prepare any entry$($s$)$ recorded by the lessor at December $31,2024,$ its fiscal year$-$end.

Answer is complete but not entirely correct.

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

Ra~ninix

Was Ses