Each of the four independent situations below describes a sales-type lease in which annual lease paymen 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) (Use appropriate factor(s) from the tables provided.) Situation 2 7 7 8 Lease term (years) Lessor's and Residual value: lessee's interest rate 8 12% 98 118 10% $50,000 Estimated fair value. Guaranteed by lessee $8,000 $50,000 $8,000 $60,000 0 Determine the following amounts at the beginning of the lease. (Round your intermediate and final answe dollar amount.) Situation A The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 4 Lease payments B 2
Each of the four independent situations below describes a sales-type lease in which annual lease paymen 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) (Use appropriate factor(s) from the tables provided.) Situation 2 7 7 8 Lease term (years) Lessor's and Residual value: lessee's interest rate 8 12% 98 118 10% $50,000 Estimated fair value. Guaranteed by lessee $8,000 $50,000 $8,000 $60,000 0 Determine the following amounts at the beginning of the lease. (Round your intermediate and final answe dollar amount.) Situation A The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 4 Lease payments B 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Each of the four independent situations below describes a sales-type lease in which annual lease payments a
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,
$1) (Use appropriate factor(s) from the tables provided.)
Situation
1
2
3
Lease term (years)
7
7
8
Lessor's and lessee's interest rate
Residual value:
8
128
98
11%
10%
Estimated fair value
0
$50,000
$8,000
$50,000
Guaranteed by lessee
0
0
$8,000
$60,000
Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers
dollar amount.)
Situation
2
A
The lessor's:
1. Lease payments
2. Gross investment in the lease
3. Net investment in the lease
The lessee's:
4. Lease payments
5. Right-of-use asset
6. Lease payable
B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd1833356-83f5-4707-b448-edc9b2380e8e%2Fe3b1418c-a9af-4f2c-a11c-94030b22ce38%2F1vxrdj_processed.png&w=3840&q=75)
Transcribed Image Text:Each of the four independent situations below describes a sales-type lease in which annual lease payments a
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,
$1) (Use appropriate factor(s) from the tables provided.)
Situation
1
2
3
Lease term (years)
7
7
8
Lessor's and lessee's interest rate
Residual value:
8
128
98
11%
10%
Estimated fair value
0
$50,000
$8,000
$50,000
Guaranteed by lessee
0
0
$8,000
$60,000
Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers
dollar amount.)
Situation
2
A
The lessor's:
1. Lease payments
2. Gross investment in the lease
3. Net investment in the lease
The lessee's:
4. Lease payments
5. Right-of-use asset
6. Lease payable
B
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