Haystack, Inc

question 78

Short Answer

Haystack, Inc.manufactures machinery used in the mining industry.On January 2, 2011 it leased equipment with a cost of $200,000 to Silver Point Co.The 5-year lease calls for a 10% down payment and equal annual payments at the end of each year.The equipment has an expected useful life of 5 years.If the selling price of the equipment is $325,000, and the rate implicit in the lease is 8%, what are the equal annual payments?

---

Definitions:

Transfer Belt

A device used by healthcare providers to assist patients who are partially mobile in safely moving from one position or location to another.

Unsteady

Lacking stability in motion or balance, often leading to increased risk of falls or accidents.

Ambulate

The ability to walk or move from one place to another independently.

Locomotion

The ability or action of moving from one place to another, using mechanisms such as walking, flying, or swimming.