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Calculate the required amount of the lease payments

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Reference no: EM132543249

Question - Zest Company, as lessee, enters into a lease agreement on January 1, 2018, to lease equipment. The following data are relevant to the lease agreement.

The term of the noncancellable lease is three years, with no renewal option.

The fair value of the equipment on January 1, 2018 is $60,000. The estimated residual value is $0.

The equipment reverts back to the lessor at the termination of the lease.

The lessor used an implicit rate of 4%.

Instructions - Calculate the required amount of the lease payments.

Reference no: EM132543249

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