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Davis Co, a Lessor, Signed a Direct Financing Lease on January

Question 49

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Davis Co., a lessor, signed a direct financing lease on January 1. The cost and fair value of the machine that was leased was $60,000. The implicit interest rate was 6%. The lease period was seven years, with the first payment due immediately. Actuarial information for 6% follows:
Davis Co., a lessor, signed a direct financing lease on January 1. The cost and fair value of the machine that was leased was $60,000. The implicit interest rate was 6%. The lease period was seven years, with the first payment due immediately. Actuarial information for 6% follows: What is the annual lease payment to be collected by Davis? A) $ 8,571.43 B) $ 9,115.25 C) $10,139.72 D) $11,516.78

What is the annual lease payment to be collected by Davis?


A) $ 8,571.43
B) $ 9,115.25
C) $10,139.72
D) $11,516.78

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