On December 31, 2019, Splish Brothers Corporation signed a 6-year, non-cancelable lease for a machine. The...

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On December 31, 2019, Splish Brothers Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Splish Brothers to make annual payments of $12,188 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 8 years and a $5,900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Splish Brothers uses the straight-line method of depreciation for all of its plant assets. Splish Brothers's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Click here to view factor tables. What type of lease is this for the lessee? This is a/an lease. eTextbook and Media List of Accounts Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places eg. 5,275.) Present value of the lease payments $ On December 31, 2019, Splish Brothers Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Splish Brothers to make annual payments of $12,188 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 8 years and a $5,900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Splish Brothers uses the straight-line method of depreciation for all of its plant assets. Splish Brothers's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Click here to view factor tables. What type of lease is this for the lessee? This is a/an lease. eTextbook and Media List of Accounts Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places eg. 5,275.) Present value of the lease payments $

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Answer Explanation 1 This is aan Finance lease 2 Annual Pay... View the full answer