Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14.000 are payable atthe beginning of each year. Each is a finance lease for the lessee.Lease term (years)Asset's useful life (years)Lessor's implicit rate (known by lessee)Residual value:Guaranteed by lesseeUnguaranteedA. The lessor's:1. Total lease payments2. Gross investment in the lease3. Net investment in the leaseB. The lessee's:4. Total lease payments5. Right-of-use asset6. Lease liability$ 42,000✔✔42,00041,08442,000✔41,084 X41,084 X245.070 X47.60045.070 X1$2,000✔41,084 X41.084 X3312%$0$0Answer is complete but not entirely correct.Situation3nonePurchase option:After (years)Exercise priceReasonably certain?Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1)Determine the following amounts at the beginning of the lease:Note: Round your final answers to nearest whole dollar.247.800 X47,60045,070 X42,00041,084 X41,084 XSituation3412%$ 5,600$02$ 7,800no45,80045,80043,7893412%45,80043,789 X43,789$ 2,800$ 2,80043$ 1,800no4712%$0$ 5,6003$ 3,800yes

In case of sales type lease, it is assumed that lease indicates transfer of profit to the lessee.…

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Determine the following amounts at the beginning of the lease: Note: Round your final answers to nearest whole dollar. 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? $ 3,800 yes Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) 3 12% $0 se Situation none 3 4 12% $ 5,600 $0 3 4 12% 2 $ 7,800 no $ 2,800 $ 2,800 4 $ 1,800 no 4 7 12% se $ 5,600

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Determine the following amounts at the beginning of the lease: Note: Round your final answers to nearest whole dollar. 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? $ 3,800 yes Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) 3 12% $0 se Situation none 3 4 12% $ 5,600 $0 3 4 12% 2 $ 7,800 no $ 2,800 $ 2,800 4 $ 1,800 no 4 7 12% se $ 5,600

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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