Each of the independent situations below describes a finance lease in which annual lease payments are payable at the beginning ofeach year The lessee is aware of the lessor's implicit interest rate, (FV of $1, PV of $1, EVA of $t, PVA of $1, FVAD of $1 and PVAD of $1(Use appropriate factor(s) from the tables provided.)SituationLease temLessor's desired rate of returnLessee's incremental borrowing r ateAmount of lease10yrs20yrs10%8%$530, 00010%$730 000For convenience, here are some table values:PV, ordinary annuityPeriods; int. rate10 perieds, BY10 periods, 19%28 periods, 8%20 perieds, 10%annuity6.71016.14469.81818.5136Required:For each situation determine the amount recorded as:and final answer to the nearest whole dollar.bitiM he lessee at the beginning of the lease.(Round your intermeciekeAmount of LiabitityStuation 1Stration 2

Finance Lease is the type of lease that substantially transfers all the risks and rewards incidental…

Each of the indépendent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit interest rate, (FV of $1, PV of $1, EVA of $1. PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) ESituation 10yrs 8% Lease term 20yrs Lessor 's desired rate of return Lessee's incremental borrowing tate Amount of lease 10% $730, 000 $530, 000 For convenience, here are some table values: Periods; int, rate 10 perieds, BX 10 periods. 19% 20 periods, 8% 20 periods, 10% PV, ordinary aanuiey 6.7101 6.1446 9,8181 8.5136 annuity Required: For each situation determine the amount recorded as aliebitiy and final answer to the nearest whole dollar thể lessee at the beginning of the tease.(Round your intermeciele

Each of the indépendent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit interest rate, (FV of $1, PV of $1, EVA of $1. PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) ESituation 10yrs 8% Lease term 20yrs Lessor 's desired rate of return Lessee's incremental borrowing tate Amount of lease 10% $730, 000 $530, 000 For convenience, here are some table values: Periods; int, rate 10 perieds, BX 10 periods. 19% 20 periods, 8% 20 periods, 10% PV, ordinary aanuiey 6.7101 6.1446 9,8181 8.5136 annuity Required: For each situation determine the amount recorded as aliebitiy and final answer to the nearest whole dollar thể lessee at the beginning of the tease.(Round your intermeciele

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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sharad
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Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end of each year. The lessee is aware of the lessor's implicit rate of return. 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) Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset Situation 1 Situation 2 Situation 3 Lease Payments Right-of-use Asset/Lease 1 Payable 11 10% 11% $640,000 Situation 2 15 8% 9% $1,000,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar. 3 6 11% 10% $205,000
Hardev
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Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. 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) Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset Situation 11 Situation 2 Situation 3 Lease Payments 10 11% 12% Right-of-use Asset/Lease Payable $780,000 Situation 20 9% 10% $1,150,000 3 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar. 6 12% 11% $365,000
Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. 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) Situation 1 2 3 4 Lease term (years) Lessor's rate of return 4 10% 7 11% 5 8 9% 12% Fair value of lease asset $ 56,000 $ 356,000 $ 81,000 $ 471,000 Lessor's cost of lease asset $ 56,000 $ 356,000 $ 51,000 $ 471,000 Residual value: Estimated fair value 0 $ 56,000 Guaranteed fair value 0 0 $ 13,000 $13,000 $ 51,000 $ 56,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the essee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Lease Payments Residual…
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Manji
am. 127.
Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. 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) Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual value: Estimated fair value Guaranteed fair value Situation 1 Situation 2 Situation 3 $ Situation 4 $ $ Lease Payments 14,340 62,310 $ 16,590 × $ 79,947 1 4 10% $ 50,000 $50,000 0 0 0 $ $ $ 5,000 $ 0 2 $ 350,000 $ 350,000 Situation $ 50,000 0 PV of Lease Payments 7 11% 50,000 325,917 70,336 × $ 444,806 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest…