Kataran Company enters into a 4-year lease transaction, with payments due at the beginning of each year.
The lease payments are $68,000 per year.
The fair value of the leased asset is $280,000.
The lessor's deferred initial direct costs are equal to $14,000.
The lessor's estimate of the unguaranteed residual asset is $125,000.
Based on the information above, what is the implicit rate?

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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 $68,000 per year.
The fair value of the leased asset is $280,000.
The lessor's deferred initial direct costs are equal to $14,000.
The lessor's estimate of the unguaranteed residual asset is $125,000.
Based on the information above, what is the implicit rate?

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