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 1 5 9% $ 62,000 $ 62,000 0 0 2 8 10% $362,000 $362,000 $ 62,000 0 Lion 3 6 8% $ 87,000 $ 57,000 $ 19,000 $ 19,000 4 9 11% $ 477,000 $ 477,000 $ 31,000 $ 36,000 Required: . & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a ght-of-use asset and a lease liability, for each of the above situations. Jote: Round your answers to the nearest whole dollar amount.
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 1 5 9% $ 62,000 $ 62,000 0 0 2 8 10% $362,000 $362,000 $ 62,000 0 Lion 3 6 8% $ 87,000 $ 57,000 $ 19,000 $ 19,000 4 9 11% $ 477,000 $ 477,000 $ 31,000 $ 36,000 Required: . & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a ght-of-use asset and a lease liability, for each of the above situations. Jote: Round your answers to the nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A-2
Transcribed Image Text: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
$
$
$
S
Lease
Payments
14,624✔ S
56,757 $
15,027✔ S
75,320 $
Residual
Value
Guarantee
0
0
0
5,000
1
3333
$ 62,000
$ 62,000
5
9%
$
$
$
0
0
2
Situation
$362,000
$362,000
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 amount.
8
10%
$ 62,000
0
75,027✔
462,927✔
X Answer is not complete.
PV of
Lease
Payments
PV of Residual
Value
Guarantee
62,000
$
$
$ 87,000
$ 57,000
3
$ 19,000
$ 19,000
0
0
6
8%
33
$
4
9
11%
$ 477,000
$ 477,000
$ 31,000
$ 36,000
Right-of-use
Asset/Lease
Liability
62,000
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