Each of the four independent situations below describes a sales-type lease in which annual lease payments of $16,000 are payable at the beginning of each year, Each is a finance lease for the lessee. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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? 4 4 11% 0 0 none n/a n/a Situation 4 5 11% $6,400 0 $8,200 no 4 11% $3,200 $3,200 $2,200 no 4 4 7 11% 0 $6,400 $4,200 yes
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $16,000 are payable at the beginning of each year, Each is a finance lease for the lessee. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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? 4 4 11% 0 0 none n/a n/a Situation 4 5 11% $6,400 0 $8,200 no 4 11% $3,200 $3,200 $2,200 no 4 4 7 11% 0 $6,400 $4,200 yes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
Determine the following amounts at the beginning of the lease: (Round your final answers to n
B. The lessee's
4. Total lease payments
5. Right-of-use asset
6. Lease liability
$
64,000
64,000
none
3
n/a $ 8,200
n/a
no
2
Situation
70,400
70,400
3
3
$2,200
ΠΟ
67,200
67,200
$4,200
yes
64,000
70,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ee27961-2d98-4069-bd8e-4c3d99346202%2Fc2337115-bd74-4345-b17a-cdd5d3f1bbcd%2Fyutnw6l_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Determine the following amounts at the beginning of the lease: (Round your final answers to n
B. The lessee's
4. Total lease payments
5. Right-of-use asset
6. Lease liability
$
64,000
64,000
none
3
n/a $ 8,200
n/a
no
2
Situation
70,400
70,400
3
3
$2,200
ΠΟ
67,200
67,200
$4,200
yes
64,000
70,400
![Problem 15-9 (Algo) Lease concepts; sales-type leases; guaranteed and unguaranteed residual
value [LO15-2, 15-6]
Lease term (years)
Asset's useful life (years)
Lessor's implicit rate (known by lessee)
Residual value:
eaved
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $16,000 are
payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD
of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Guaranteed by lessee.
Unguaranteed
Purchase option:
After (years)
Exercise price.
Reasonably certain?
1
4
4
11%
e
e
none
n/a
n/a
Situation
2
4
5
11%
$ 6,400
0
www
www
3
$8,200
no
3
4
5
11%
$3,200
$3,200
$2,200
no
Next
4
4
7
11%
Save & Exit Submit
8
$.6,400
$4,200
yes
Activate Windows](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ee27961-2d98-4069-bd8e-4c3d99346202%2Fc2337115-bd74-4345-b17a-cdd5d3f1bbcd%2Fj7znlga_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 15-9 (Algo) Lease concepts; sales-type leases; guaranteed and unguaranteed residual
value [LO15-2, 15-6]
Lease term (years)
Asset's useful life (years)
Lessor's implicit rate (known by lessee)
Residual value:
eaved
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $16,000 are
payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD
of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Guaranteed by lessee.
Unguaranteed
Purchase option:
After (years)
Exercise price.
Reasonably certain?
1
4
4
11%
e
e
none
n/a
n/a
Situation
2
4
5
11%
$ 6,400
0
www
www
3
$8,200
no
3
4
5
11%
$3,200
$3,200
$2,200
no
Next
4
4
7
11%
Save & Exit Submit
8
$.6,400
$4,200
yes
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