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Crosley company a machinery dealer

28/04/2021 Client: asad8949eF Deadline: 2 Day

Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2019. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2019. Crosley had purchased the machine during 2018 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease.

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