Question

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 are payable at the beginning of each year Each is a finance lease for the lessee. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 0 Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual values Guaranteed by lessee Unguaranteed Purchase options After (years) Exercise price Reasonably certain $6,800 0 $3,400 $3,400 $6,000 none n/a $8,400 $2,400 $4,400 yes DO no Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 23 A The lessor's 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The losseo's: 4. Total lease payments 5. Right-of-use asset

Answer 1

Answer → Determine the following amounts at the beginning of the lease & situation 2 1 3 $40800 |$40800 $38060 |$37400 |$40800 $38060 |$38400 140800 $38060 The lessor's : 1. Total lease payments $34000 • Gross investment in $34000 the lease 3. wet investment in the $32040 lease IB. The lessee's : 4. Total lease payments $34000 5. Right of use Asset $32040 16. Lease liability 1432040 $40800 $38060 $38060 $ 37400 $38400 $ $35930 1 $35050 $35930