3 Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's Implicit rate of return. (EV 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.) 15 11% Situation 25 131 II 125 points Skipped Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset 12% $680,000 eBook 1.0% $1,060,000 6 1.2% 21% $265,000 Hint Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole doller.) Lease Payments Right-of-use Asset/Lease Payable Print Situation 1 References 이 Situation 2 Situation 3
3 Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's Implicit rate of return. (EV 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.) 15 11% Situation 25 131 II 125 points Skipped Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset 12% $680,000 eBook 1.0% $1,060,000 6 1.2% 21% $265,000 Hint Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole doller.) Lease Payments Right-of-use Asset/Lease Payable Print Situation 1 References 이 Situation 2 Situation 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the
beginning of each year. The lessee is aware of the lessor's Implicit rate of return. (EV 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.)
15
11%
Situation
25
131
II
125
points
Skipped
Lease term (years)
Lessor's rate of return (known by lessee)
Lessee's incremental borrowing rate
Fair value of lease asset
12%
$680,000
eBook
1.0%
$1,060,000
6
1.2%
21%
$265,000
Hint
Required:
a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a
right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole doller.)
Lease Payments Right-of-use Asset/Lease
Payable
Print
Situation 1
References
이
Situation 2
Situation 3"
Transcribed Image Text:3
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the
beginning of each year. The lessee is aware of the lessor's Implicit rate of return. (EV 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.)
15
11%
Situation
25
131
II
125
points
Skipped
Lease term (years)
Lessor's rate of return (known by lessee)
Lessee's incremental borrowing rate
Fair value of lease asset
12%
$680,000
eBook
1.0%
$1,060,000
6
1.2%
21%
$265,000
Hint
Required:
a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a
right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole doller.)
Lease Payments Right-of-use Asset/Lease
Payable
Print
Situation 1
References
이
Situation 2
Situation 3
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