Each of the four independent situations below describes a capital lease in which annual lease payments are
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Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. Determine the annual lease payments foreach:
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Situation 2 3 Lease term (years) Lessor's rate of return Fair value of leased asset 50,000S 3,50,000 75,000S 4,65,000 lessor's cost of leased assets 50,000s 3,50,0005 45,0005 4,65,000 10% | 11% | 9% | 12% Guaranteed by lessee 0 $50,0000 $ 30,000 Unguaranteed 0 $ 7,000 $ 15,000
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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