Each of the four independent situations below describes a finance lease in which annual lease payments...
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Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (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.) Situation 3 4 Lease term (years) Lessor's rate of return 8 6 10% 11% 9% 12% Fair value of lease asset $59,000 $359,000 $84,000 $474,000 Lessor's cost of lease asset $59,000 $359,000 $54,000 $474,000 Residual value: $ 32,000 $ 37,000 Estimated fair value $ 59,000 $16,000 $16,000 Guaranteed fair value 0 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole dollar amount.) PV of Residual Value Guarantee Right-of-use Asset/Lease Liability Residual Value PV of Lease Lease Payments Guarantee Payments Situation 1 $ 14,149 $ or $ 59,000 $ 2$ 59,000 Situation 2 $ 2$ 2$ Situation 3 $ Situation 4 2$ Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (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.) Situation 3 4 Lease term (years) Lessor's rate of return 8 6 10% 11% 9% 12% Fair value of lease asset $59,000 $359,000 $84,000 $474,000 Lessor's cost of lease asset $59,000 $359,000 $54,000 $474,000 Residual value: $ 32,000 $ 37,000 Estimated fair value $ 59,000 $16,000 $16,000 Guaranteed fair value 0 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole dollar amount.) PV of Residual Value Guarantee Right-of-use Asset/Lease Liability Residual Value PV of Lease Lease Payments Guarantee Payments Situation 1 $ 14,149 $ or $ 59,000 $ 2$ 59,000 Situation 2 $ 2$ 2$ Situation 3 $ Situation 4 2$
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
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