Calculate Lease Payment by Lessor

question 92

Essay

Calculate lease payment by lessor
Lessor Corporation (a private company using ASPE) has a $ 500,000 piece of machinery that they want to lease to Lessee Corporation. Lessor wants to earn a 9% return on its lease. The machinery will be leased for 7 years and the annual rental payment will be due at the beginning of each year. The lease doesn't include a bargain purchase option or residual value at the end of the lease.
Calculate the annual lease payment Lessor Corporation should charge to Lessee Corporation.

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Definitions:

Synchrony

The simultaneous action or occurrence of events or processes, often used to describe moments of shared attention or coordination between individuals.

Responsiveness

The quality of reacting quickly and positively to stimuli or needs, often used in customer service, healthcare, and personal relationships.

Easily Consoled

describes a state of being able to be comforted or soothed with relative ease, often used in the context of infants or emotional distress.

Securely Attached

A term describing individuals, especially infants, who have developed strong and healthy emotional bonds with their caregivers, characterized by trust and a sense of safety.