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Sunland Leasing Company signs an agreement on January $1,2025,$ to lease equipment to Carla Vista Company. The following information relates to this agreement.

The term of the non$-$cancelable lease is $6$ years with no renewal option. The equipment has an estimated economic life of $6$ years.

The cost of the asset to the lessor is $$421,000.$ The fair value of the asset at January $1,2025,$ is $$421,000.$

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $$23,000,$ none of which is guaranteed.

The agreement requires equal annual rental payments, beginning on January $1,2025.$

Collectibility of the lease payments by Sunland is probable.

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$($a$)$

Your answer is correct.

Assuming the lessor desires an $6\%$ rate of return on its investment, calculate the amount of the annual rental payment required. $($For colculation purposes, use $5$ decimal ploces as displayed in the factor table provided and the final anower to $0$ decimal ploces ess. $5,275.$

Amount of the annual rental payment

$

$$

Question $5$ of $7$

$\frac{2}{6}$

Prepare an amortization schedule that is suitable for the lessor for the lease term. $($Round answers to $0$ declmal ploces ey $5,275)$

SUNLAND LEASING COMPANY $($lessor$)$ Lease Amortization Schedile

Annual Lease Payment

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