Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) **Lease Situations Overview**This task outlines the parameters for four independent situations involving a sales-type lease with annual payments. Each case is a finance lease where $17,000 is payable at the beginning of each year. Use the appropriate factors from the financial tables provided to analyze each situation:### Lease Details by Situation:#### Situation 1- **Lease term (years):** 2- **Asset’s useful life (years):** 2- **Lessor’s implicit rate:** 9%- **Residual value:** - Guaranteed by lessee: $0 - Unguaranteed: $0- **Purchase option:** None#### Situation 2- **Lease term (years):** 2- **Asset’s useful life (years):** 3- **Lessor’s implicit rate:** 9%- **Residual value:** - Guaranteed by lessee: $6,800 - Unguaranteed: $0- **Purchase option:** - After 1 year - Exercise price: $8,400 - Reasonably certain: No#### Situation 3- **Lease term (years):** 2- **Asset’s useful life (years):** 3- **Lessor’s implicit rate:** 9%- **Residual value:** - Guaranteed by lessee: $3,400 - Unguaranteed: $3,400- **Purchase option:** - After 2 years - Exercise price: $2,400 - Reasonably certain: No#### Situation 4- **Lease term (years):** 2- **Asset’s useful life (years):** 5- **Lessor’s implicit rate:** 9%- **Residual value:** - Guaranteed by lessee: $0 - Unguaranteed: $6,800- **Purchase option:** - After 3 years - Exercise price: $4,400 - Reasonably certain: Yes### Required Calculations:**Determine the following amounts at the beginning of the lease (rounded to the nearest whole dollar):**- **A. Lessor's:** 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease- **

A lease is a contract that outlines the terms under which one party agrees to rent a property – in this case, property – owned by the other party. Answer:- Excel Working:-

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Accounting

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of $1, EVAD of $1 and PVÁD of $1) (Use appropriate factor(s) from the tables provided.) Situation 3 4. Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price 2 3 9% 5 9% 9% 9% $ 3,400 $ 3,400 $ 6,800 $ 6,800 none 1. 2 n/a n/a $ 8,400 $ 2,400 $ 4,400 Reasonably certain? no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of $1, EVAD of $1 and PVÁD of $1) (Use appropriate factor(s) from the tables provided.) Situation 3 4. Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price 2 3 9% 5 9% 9% 9% $ 3,400 $ 3,400 $ 6,800 $ 6,800 none 1. 2 n/a n/a $ 8,400 $ 2,400 $ 4,400 Reasonably certain? no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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