Exhibit 21-3 on January 1, 2010, Quincy Company Enters into a Five-Year

Exhibit 21-3 On January 1, 2010, Quincy Company enters into a five-year sales-type lease with Andy Company.The lease requires Andy to make five annual payments at the beginning of the year, with the first payment due January 1, 2010.The lease includes a bargain purchase price of $10, 000.Quincy requires a 10% rate of return.The cost to Quincy of the property is $100, 000, and it has a fair value of $150, 000.Present value factors for a 10% interest rate are as follows:
$\begin{array}{llr} \text { Present value of \( \$ 1 \) for \( n=1 \) } &0.909091\\ \text { Present value of \( \$ 1 \) for \( n=5 \) } &0.620921\\ \text { Present value of an ordinary annuity for \( n=5 \) } &3.790787\\ \text { Present value of an annuity due for \( n=5 \) } &4.169865\\\end{array}$

-Refer to Exhibit 21-3.The annual lease payment Quincy would require is (round the answer to the nearest dollar)

A) $35, 972
B) $39, 570
C) $34, 483
D) $37, 931