Each of the four independent situations below describes a sales-type lease in which annual lease payments...
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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $13,500 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.) Situation 2 4 Lease term (years) 5 Asset's useful life (years) 6 11% 11% 11% Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee 0 $ 5,400 $ 2,700 0 Unguaranteed 0 0 $ 2,700 $ 5,400 none 4 5 3 Purchase option: After (years) Exercise price Reasonably certain? n/a $ 7,700 $ 1,700 $ 3,700 n/a no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. Situation 1 3 4 A. The lessor's: 1. $ 67,500 70,200 X 67,500 2. 67,500 72,900 7,900 3. 55,382 5,587 58,587 The lessee's: 4. 67,500 72,900 X 54,000 5. 55,382 58,587 48,927 6. 55,382 58,587 48,927 B. Total lease payments Gross investment in the lease Net investment in the lease Total lease payments Right-of-use asset Lease liability 155 2 72,900 X 72,900 58,587 72,900 X 58,587 58,587 X 3 5 ол 6 11% in co 5 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $13,500 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.) Situation 2 4 Lease term (years) 5 Asset's useful life (years) 6 11% 11% 11% Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee 0 $ 5,400 $ 2,700 0 Unguaranteed 0 0 $ 2,700 $ 5,400 none 4 5 3 Purchase option: After (years) Exercise price Reasonably certain? n/a $ 7,700 $ 1,700 $ 3,700 n/a no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. Situation 1 3 4 A. The lessor's: 1. $ 67,500 70,200 X 67,500 2. 67,500 72,900 7,900 3. 55,382 5,587 58,587 The lessee's: 4. 67,500 72,900 X 54,000 5. 55,382 58,587 48,927 6. 55,382 58,587 48,927 B. Total lease payments Gross investment in the lease Net investment in the lease Total lease payments Right-of-use asset Lease liability 155 2 72,900 X 72,900 58,587 72,900 X 58,587 58,587 X 3 5 ол 6 11% in co 5
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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