Question: can someone please answer these using a financial calculator. I have set it up. Chapter 17 - Lenses 77. The following information relates to a

can someone please answer these using a financial calculator. I have set it up. can someone please answer these using a financial calculator. I have set

Chapter 17 - Lenses 77. The following information relates to a lease contract Inception: 1/1/1 Annual lease payments of $3,000 due each 12/31 beginning 12/31/1 End of lease term: 115 There are 4 lease payments in all Useful life of assets inception: 10 yrs Expected residual value at 1/1/3: $6,000 Lessee is given option to purchase asset at 1/1/5 for $1,000 Using an interest rate of 10%, what is the present value of minimum lase payments for the lessica at inception? A) $10,193 B) S9,510 C) $10,419 D) $13,608 E) $13,000 Ans A Difficulty: Medium Level of Learning: Application Topic: LO2 Pmt - 3000 Pr. 78. A lessor and lessee enter into a lease agreement with the following characteristics: Inception: 1/1/x0 6 annual lease payments of $10,000 are due cach Jan. 1 beginning 1/1/x0 End of lease term: 123l/x5 Book value of equipment under lease, at inception: $35,000 Market value of equipment under lease at inception: $50000 Remaining useful life of equipment at inception: 9 yrs Expected residual value at end of lease term: $4,000 Interest rate used by lessor and lessee: 10% 1=1010 : Pint= 10000 Assuming the lessee will capitalize this loase, what is the amount of the net lease liability at inception, before the first payment is made? A) $47,908 B) $60,000 C) $50,166 D) $64,000 PV: Ans: A Difficulty: Medium Level of Learning: Application Topic: LO2

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