ONLY NEED ASSISTANCE WITH NUMBER 8, What amount would NIC record as a right-of-use asset at the beginning of the lease? On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Leasepayments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value byNIC. Portions of the United Leasing's lease amortization schedule appear below: (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1and PVAD of $1) (Use appropriate factor(s) from the tables provided.)EffectiveDecrease inOutstandingJan. 1PaymentsInterestBalanceBalance2021142,209202111,00011,000131,209202211,0007,8733,127128,0823,3153,5143,725202311,0007,685124,7677,4867,275121,253117,528113,580202411,000202511,000202611,0007,0523,94811,00011,00011,00027,1653,0552,5792,07342,97534,55420387,945203920408,4218,92725,62720411,53825,627Required:1. What is the lease term in years?2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.)3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.)4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.)5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.)6. What is United's net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest wholedollar.)7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.)8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest wholedollar.)

The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are allowed to answer only the first three sub-parts in case of multiple sub-parts.Part 1 2021 to 2040 20 Years Part 2 $ 27165 Part 3 $7873 / $131209 6.00% Part 8 ($11,000*)*PV n=20, i=6% $11,000*12.1581 $ 133739

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On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC. Portions of the United Leasing's lease amortization schedule appear below: (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.) Effective Decrease in Outstanding Intonoct Ralanc. Palanco

On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC. Portions of the United Leasing's lease amortization schedule appear below: (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.) Effective Decrease in Outstanding Intonoct Ralanc. Palanco

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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Question

ONLY NEED ASSISTANCE WITH NUMBER 8, What amount would NIC record as a right-of-use asset at the beginning of the lease?

On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease
payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by
NIC. Portions of the United Leasing's lease amortization schedule appear below: (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.)
Effective
Decrease in
Outstanding
Jan. 1
Payments
Interest
Balance
Balance
2021
142,209
2021
11,000
11,000
131,209
2022
11,000
7,873
3,127
128,082
3,315
3,514
3,725
2023
11,000
7,685
124,767
7,486
7,275
121,253
117,528
113,580
2024
11,000
2025
11,000
2026
11,000
7,052
3,948
11,000
11,000
11,000
27,165
3,055
2,579
2,073
42,975
34,554
2038
7,945
2039
2040
8,421
8,927
25,627
2041
1,538
25,627
Required:
1. What is the lease term in years?
2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.)
3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.)
4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.)
5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.)
6. What is United's net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole
dollar.)
7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.)
8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole
dollar.)

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