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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,000 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. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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 Reasonably certain? 1 5 5 98 0 0 none n/a n/a Situation 2 5 6 98 $4,800 0 3 5 6 98 $2,400 $2,400 4 4 $7,400 $1,400 no no 4 5 8 98 0 $4,800 $3,400 yes

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,000 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. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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 Reasonably certain? 1 5 5 98 0 0 none n/a n/a Situation 2 5 6 98 $4,800 0 3 5 6 98 $2,400 $2,400 4 4 $7,400 $1,400 no no 4 5 8 98 0 $4,800 $3,400 yes

FINANCIAL ACCOUNTING
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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I only need colum four!!!!! numbers in that column are inncorrect

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,000 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, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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 Reasonably certain? A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability $ 1 60,000 60,000 50,877 60,000 50,877 50,877 2 1 5 5 98 0 60,000 64,800 53,996 0 60,000 50,877 50,877 Situation Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation none n/a $7,400 n/a 2 5 6 9% $4,800 0 3 4 no 60,000 64,800 53,996 60,000 50,877 50,877 3 5 6 9% 0 $2,400 $2,400 $4,800 4 $1,400 4 no 39,500 39,400 39,400 4 5 8 9% 39,400 35,735 4 $3,400 yes
Transcribed Image Text:Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,000 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, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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 Reasonably certain? A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability $ 1 60,000 60,000 50,877 60,000 50,877 50,877 2 1 5 5 98 0 60,000 64,800 53,996 0 60,000 50,877 50,877 Situation Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation none n/a $7,400 n/a 2 5 6 9% $4,800 0 3 4 no 60,000 64,800 53,996 60,000 50,877 50,877 3 5 6 9% 0 $2,400 $2,400 $4,800 4 $1,400 4 no 39,500 39,400 39,400 4 5 8 9% 39,400 35,735 4 $3,400 yes
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