Mays Company has a machine with a cost of 750000 which also

Mays Company has a machine with a cost of $750,000 which also is its fair value on the date the machine is leased to Park Company. The lease is for 6 years and the machine is estimated to have an unguaranteed residual value of $75,000, if the lessor\'s interest rate implicit in the lease is 12%, the six beginning-of-the-year lease payments would be Select one: a. $154,623. b. $125,000. c. $146,587. d. $162,874

Solution

Correct answer option d.162,874 $

in a current situation beiggining payment is done