Dillon Co, a Lessor, Signed a Direct Financing Lease on January

Multiple Choice

Dillon Co., a lessor, signed a direct financing lease on January 1.The cost and fair value of the machine that was leased was $60, 000.The implicit interest rate was 6%.The lease period was seven years, with the first payment due immediately.Actuarial information for 6% follows: $\begin{array}{llcc}& 6 \text { Years }& 7 \text { Years }& 8 \text { Years }\\\text { Present value of ordinary anuity of } \$ 1&4.91732&5.58238&6.20979 \\\end{array}$
What is the annual lease payment to be collected by Dillon?

A) $ 8, 571.43
B) $ 9, 115.25
C) $10, 139.72
D) $11, 516.78