Exhibit 20-3 On January 1, 2014, Quinn 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, 2014. The lease includes a bargain purchase price of $10,000. Quinn requires a 10% rate of return. The cost to Quinn 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:
-Refer to Exhibit 20-3. The annual lease payment Quinn would require is (round the answer to the nearest dollar)

Question

Exhibit 20-3 On January 1, 2014, Quinn 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, 2014. The lease includes a bargain purchase price of $10,000. Quinn requires a 10% rate of return. The cost to Quinn 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:  
-Refer to Exhibit 20-3. The annual lease payment Quinn would require is (round the answer to the nearest dollar)

Quizplus · Accepted Answer

The Answer of Exhibit 20-3 On January 1, 2014, Quinn 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, 2014. The lease includes a bargain purchase price of $10,000. Quinn requires a 10% rate of return. The cost to Quinn 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:  
-Refer to Exhibit 20-3. The annual lease payment Quinn would require is (round the answer to the nearest dollar)

Exhibit 20-3 on January 1, 2014, Quinn Company Enters into a Five-Year