Exercise price Reasonably certain? n/a n/a $ 7,500 no $ 1,500 no $ 3,500 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) A. Answer is complete but not entirely correct. Situation 1 2. 3 4 The lessor's: 1. Total lease payments $ 37,500 42,500 40,000 41,000 2. Gross investment in the 37,500 42,500 42,500 42,500 lease 3. Net investment in the lease 34,791 38,760 38,760 38,760 The lessee's: 4. Total lease payments 37,500 42,500 40,000 41,000 5. Right-of-use asset 34,791 38,760 36,775 37,569 6. Lease liability 34,791 38,760 36,775 X 37,569 B. 6 Problem 15-9 (Algo) 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 $12,500 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.) 1 3 3 8% Situation 2 3 4 8% 3 3 4 8% 4 3 6 8% 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? $ 5,000 0 $ 2,500 $ 2,500 $5,000 none n/a n/a 2 $ 7,500 no 3 $ 1,500 no 3 $ 3,500 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 $ 37,500 37,500 45,000 50,000 39,000 44,000 41.000 46,000 A. The lessor's 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 37,500