Information for four separate finance/sales-type lease scenarios is provided as follows: Complete the table, assuming that the
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Information for four separate finance/sales-type lease scenarios is provided as follows: Complete the table, assuming that the lessee is aware of the lessor’s implicit lease rate.
Note : Round each amount to the nearest whole dollar.
| | A | B | C | D |
|---|---|---|---|---|
| Lessor’s desired rate of return | 6% | 7% | 6% | 8% |
| Lease term | 5 | 10 | 8 | 4 |
| Fair value of underlying asset | $35,000 | $140,000 | $18,000 | $230,000 |
| Beginning or end of year payments | Beginning | Beginning | Beginning | End |
| Guaranteed residual value | 0 | 12,000 | 0 | 80,000 |
| Residual value expected by lessee | 0 | 0 | 0 | 30,000 |
| Unguaranteed residual value expected by lessor | 0 | 0 | 3,500 | 0 |
| Initial direct lease costs | 250 | 1,000 | 0 | 1,200 |
| Prepaid lease payment | 0 | 1,500 | 0 | 0 |
| Lessor lease payment | | | | |
| Lease liability | | | | |
| Right-of-use asset | | | |
Expert Answer:
Answer sol Lessor lease payments 830887 1906432 254501 5168812 Lease payment liability 3500000 13389... View the full answer
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