Rentals Inc. leases a vehicle to United Inc. for four years on January 1 of Year...

 

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Rentals Inc. leases a vehicle to United Inc. for four years on January 1 of Year 1, requiring equal annual payments on each January 1, with the first payment due at the lease commencement. The underlying asset, recently purchased new, cost the lessor $81,000. The estimated unguaranteed value of the asset at the end of the lease term is $9,000. The annual lease payments were computed to yield Rentals Inc. 6%, a rate known to United Inc. The underlying asset has a six-year life with zero residual value at the end of Year 6. There is no purchase option, and the asset is retained by Rentals Inc. at the end of the lease term. The accounting period for both lessor and lessee ends December 31. Required a. Compute the annual lease payment calculated by the lessor. Note: Round your answer to the nearest whole dollar. Use the rounded amount for later calculations. Note: Do not use negative signs with your answer. Lease Payment: $ 20,803 x Rentals Inc. leases a vehicle to United Inc. for four years on January 1 of Year 1, requiring equal annual payments on each January 1, with the first payment due at the lease commencement. The underlying asset, recently purchased new, cost the lessor $81,000. The estimated unguaranteed value of the asset at the end of the lease term is $9,000. The annual lease payments were computed to yield Rentals Inc. 6%, a rate known to United Inc. The underlying asset has a six-year life with zero residual value at the end of Year 6. There is no purchase option, and the asset is retained by Rentals Inc. at the end of the lease term. The accounting period for both lessor and lessee ends December 31. Required a. Compute the annual lease payment calculated by the lessor. Note: Round your answer to the nearest whole dollar. Use the rounded amount for later calculations. Note: Do not use negative signs with your answer. Lease Payment: $ 20,803 x