Kataran Company enters into a 4-year lease transaction, with payments due at the beginning of each year. The lease payments are $78,000 per year.
The fair value of the leased asset is $290,000.
The lessor's deferred initial direct costs are equal to $24,000.
The lessor's estimate of the unguaranteed residual asset is $115,000.
Based on the above information, what is the implicit rate in the lease for Kataran?
A) 11.48%
B) 21.81%
C) 14.77%
D) 16.54%

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The Answer of Kataran Company enters into a 4-year lease transaction, with payments due at the beginning of each year. The lease payments are $78,000 per year.
The fair value of the leased asset is $290,000.
The lessor's deferred initial direct costs are equal to $24,000.
The lessor's estimate of the unguaranteed residual asset is $115,000.
Based on the above information, what is the implicit rate in the lease for Kataran?
A) 11.48%
B) 21.81%
C) 14.77%
D) 16.54%

Kataran Company Enters into a 4-Year Lease Transaction, with Payments