Hi$-$Tech Computers leased cloud$-$computing server racks to RAND Company for five years. Hi Tech

manufactured the server racks for $$100,000.$ The racks have a sales amount of $$130,000,$ an estimated life of

five years, and no residual value. The lease started on January $1,2022.$ Hi$-$Tech used a target return of $7\%.$

Payments are at the beginning of the period.

REQUIRED:

$1.$ Compute the lease payment

$2.$ Give the entries at January $1,2022,$ for Hi$-$Tech and RAND.

Answer rating: 100% (QA)

Answer To solve this problem we need to use the present value of an annuity formula to calculate the ... View the full answer