Current Attempt in Progress Windsor Leasing Group signs an agreement on January 1, 2022, to lease equipment to Cole plc. The following information relates to this agreement. 1. The term of the...

Extracted text: Current Attempt in Progress Windsor Leasing Group signs an agreement on January 1, 2022, to lease equipment to Cole plc. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economiclife of 6 years. 2. The cost of the asset to the lessor is £275,000. The fair value of the asset at January 1, 2022, is £275,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of £24,335, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1, 2022. 5. Collectibility of the lease payments by Windsor is probable. Click here to view factor tables. (a) Assuming the lessor desires an 8% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to O decimal places eg. 5,275.) Amount of the annual rental payment