American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2011. The lease agreement for the $4 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Barton’s implicit interest rate was 11% (also American Food Services’ incremental borrowing rate). (Use Table 4)

What is the question and we have no access to Table 4.

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To calculate the lease payment for the packaging machine leased by American Food Services, Inc. from Barton and Barton Corporation, you can use the present value of an ordinary annuity formula.

The formula to calculate the present value of an ordinary annuity is:
PV = P * [(1 - (1 + r)^(-n)) / r]

Where:
PV = Present value of the annuity (lease payments)
P = Payment amount per period
r = Interest rate per period
n = Number of periods

In this case, the lease agreement specifies four equal payments at the end of each year, and the implicit interest rate is 11%. The useful life of the machine is also four years with no residual value.

Using the formula, we can plug in the values:
PV = 4,000,000 * [(1 - (1 + 0.11)^(-4)) / 0.11]

Calculating the equation will give you the present value of the lease payments, which represents the lease payment for the packaging machine leased by American Food Services, Inc.