Problem 15-9 Lease concepts; sales-type leases; guaranteed and unguaranteed residual value [LO15-2, 15-6] Each of the...

 

Transcribed Image Text:

Problem 15-9 Lease concepts; sales-type leases; guaranteed and unguaranteed residual value [LO15-2, 15-6] Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,500 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.) Lease term (years). Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? The lessor's: 1. Lease payments 2. Gross investment in the lease. 3. Net investment in the lease B. The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable 1 2 4 4 13% 0 0 none n/a n/a Situation Situation 2 4 5 13% $5,800 Ø 3 3 $ 7,900 no 3 Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) 4 5 13% $ 2,900 $ 2,900 4 $ 1,900 no 4 4 4 7 13% 0 $5,800 3 $3,900 yes Problem 15-9 Lease concepts; sales-type leases; guaranteed and unguaranteed residual value [LO15-2, 15-6] Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,500 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.) Lease term (years). Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? The lessor's: 1. Lease payments 2. Gross investment in the lease. 3. Net investment in the lease B. The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable 1 2 4 4 13% 0 0 none n/a n/a Situation Situation 2 4 5 13% $5,800 Ø 3 3 $ 7,900 no 3 Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) 4 5 13% $ 2,900 $ 2,900 4 $ 1,900 no 4 4 4 7 13% 0 $5,800 3 $3,900 yes

Answer rating: 100% (QA)

Cell References A 1 INPUTS 2 Time beg 1 End 0 3 Lease Payments 4 Leas... View the full answer