Hyde Company leased equipment to Pittman Corporation under a six year lease agreement that qualifies as a direct-finance lease. The asset cost $1,780,000. The lease contains a bargain purchase option that is effective at the end of the sixth year. The asset has an expected economic life of 10 years and is expected to have a residual value of $4000 at the end of the 10th year. Assuming that straight-line depreciation is used, what would be the annual depreciation? (Round your final answer to the nearest whole dollar.)

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The Answer of Hyde Company leased equipment to Pittman Corporation under a six year lease agreement that qualifies as a direct-finance lease. The asset cost $1,780,000. The lease contains a bargain purchase option that is effective at the end of the sixth year. The asset has an expected economic life of 10 years and is expected to have a residual value of $4000 at the end of the 10th year. Assuming that straight-line depreciation is used, what would be the annual depreciation? (Round your final answer to the nearest whole dollar.)

Hyde Company Leased Equipment to Pittman Corporation Under a Six