Question: please find your own tables. they are same across the board. please google them thank you. A lease agreement that qualifies as a finance lease
please find your own tables. they are same across the board. please google them thank you.

A lease agreement that qualifies as a finance lease calls for annual lease payments of $60,000 over a six-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 7%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $280,000. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: a. Determine the price at which the lessor is "selling" the asset (present value of the lease payments). b. Create a partial amortization table through the second payment on January 1, 2017 c. What would be the increase in earnings that the lessor would report in its income statement for the year ended December 31, 2016 (ignore taxes)? Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the price at which the lessor is "selling the asset (present value of the lease payments). (Round your answers to nearest whole number and round percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: Lease Payment n PV of Lease Required Required B > Required A Required B Required C Create a partial amortization table through the second payment on January 1, 2017. (Enter all amounts as positive values. Round your answers to nearest whole number) Lease Effective Decrease in Outstanding Date Payment Interest Balance Balance 01/01/2016 01/01/2016 01/01/2017 Required A Required B Required C What would be the increase in earnings that the lessor would report in its income statement for the year ended December 31 2016 (ignore taxes)? (Input decreases to income as negative amounts. Round your answers to nearest whole number.) Pretax impact on income related to the lease: Total pretax impact on income
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
