the following situation describes a sales-lease type in which annual lease payments of $100,000 are payable at the beginning of each year. it is also correctly classified as a finance lease for the lessee.

Lease term (years) 6

Lessor's and lessee's interest rate 12%

Residual value:

Estimated fair value: $6,000

Guaranteed by lessee $8,000

the present value of an annuity due for $1 for 6 years at 12% is 4.60478 and the present value of $1 for 6 years at 12% is .50663. which of the following is the correct amount reported at the beginning of the lease before the first payment?

A. leave receivable of $463,518

B. Lease of payable $460,478

C. Right - of- use asset of $461,491

D. None of these answers are correct

Answer rating: 100% (QA)

In the Given Case The difference between Guranteed Fair Valu... View the full answer