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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,000 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 Quar Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? A. B. The lessor's: 1. Total lease payments Gross investment in the lease Net investment in the lease 2. 3. The lessee's: 4. 5. 6. Total lease payments Right-of-use asset Lease liability $ 75,000✔ 75,000✔ 59,891 X 1 5 5 8% 75,000✔ 59,891 X 59,891 X 0 0 none n/a n/a 2 Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) $ 6,000 0 > Answer is complete but not entirely correct. Situation 4 $ 8,000 no Situation 63,974 x 2 5 6 8% 81,000 X 81,000✔ 81,000 x 63,974 X 63,974 X $ 3,000 $3,000 3 5 $2,000 3 5 6 8% 78,000 X 81,000✔ 63,974 x no 78,000 X 61,933 x 61,933 x 4 0 $ 6,000 4 5 8 8% 3 $ 4,000 yes 49,000✔ 55,000 46,593 49,000 X 41,830 x 41,830

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,000 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 Quar Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? A. B. The lessor's: 1. Total lease payments Gross investment in the lease Net investment in the lease 2. 3. The lessee's: 4. 5. 6. Total lease payments Right-of-use asset Lease liability $ 75,000✔ 75,000✔ 59,891 X 1 5 5 8% 75,000✔ 59,891 X 59,891 X 0 0 none n/a n/a 2 Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) $ 6,000 0 > Answer is complete but not entirely correct. Situation 4 $ 8,000 no Situation 63,974 x 2 5 6 8% 81,000 X 81,000✔ 81,000 x 63,974 X 63,974 X $ 3,000 $3,000 3 5 $2,000 3 5 6 8% 78,000 X 81,000✔ 63,974 x no 78,000 X 61,933 x 61,933 x 4 0 $ 6,000 4 5 8 8% 3 $ 4,000 yes 49,000✔ 55,000 46,593 49,000 X 41,830 x 41,830

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,000 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: Purchase option: After (years) Exercise price Guaranteed by lessee Unguaranteed A. B. Reasonably certain? The lessor's: 1. Total lease payments Gross investment in the lease Net investment in the lease 2. 3. The lessee's: 4. 5. 6. Total lease payments Right-of-use asset Lease liability 1 $ 75,000✔ 75,000✔ 59,891 x 1 75,000✔ 59,891 X 59,891 X 5 5 8% 0 none n/a n/a 2 Situation $ 6,000 0 Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) 2 5 4 $ 8,000 no Answer is complete but not entirely correct. Situation 6 8% 81,000 81,000 63,974 X 81,000 X 63,974 X 63,974 X 3 $ 3,000 $3,000 3 5 6 8% 5 $ 2,000 no 78,000 X 81,000✔ 63,974 X 78,000 X 61,933 X 61,933 x 4 $ 6,000 4 5 $ 4,000 yes 49,000✔ 55,000 46,593 8 8% * 49,000 X 41,830 x 41,830 x
Transcribed Image Text:Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,000 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: Purchase option: After (years) Exercise price Guaranteed by lessee Unguaranteed A. B. Reasonably certain? The lessor's: 1. Total lease payments Gross investment in the lease Net investment in the lease 2. 3. The lessee's: 4. 5. 6. Total lease payments Right-of-use asset Lease liability 1 $ 75,000✔ 75,000✔ 59,891 x 1 75,000✔ 59,891 X 59,891 X 5 5 8% 0 none n/a n/a 2 Situation $ 6,000 0 Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) 2 5 4 $ 8,000 no Answer is complete but not entirely correct. Situation 6 8% 81,000 81,000 63,974 X 81,000 X 63,974 X 63,974 X 3 $ 3,000 $3,000 3 5 6 8% 5 $ 2,000 no 78,000 X 81,000✔ 63,974 X 78,000 X 61,933 X 61,933 x 4 $ 6,000 4 5 $ 4,000 yes 49,000✔ 55,000 46,593 8 8% * 49,000 X 41,830 x 41,830 x
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