Please provide the Lease Obligation Table for the operating Lease from the Lessee's point of view which has the following contract terms:

Refer to the various tables at the end of Chapter 6 of your textbook for all the necessary factors needed to estimate the lease Present Value

				Is the Lease Term
Revised Contract Terms				Change from
				Finance Lease
1	Lease Term		2 years	Yes
2	Implied Lease Rate		6%	Yes
3	Annual Lease Payment		40,000	Yes	Note: the sum over the available contract term remains 40,000
4	Residual Value		0	NO
5	Timing of lease payments		At start of year	Yes

Answer rating: 100% (QA)

Year Lease payment Discount6 Present value of lease pa... View the full answer