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15.6 please help will give like if answers r correct Exercise 15-10 (Static) Lessor calculation of annual lease payments; lessee calculation of asset and liability
15.6 please help will give like if answers r correct
Exercise 15-10 (Static) Lessor calculation of annual lease payments; lessee calculation of asset and liability [LO15-2] 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. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Lease tern (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset Required: Situation 10 20 4 11% 9% 12% 12% 10% 10% $600,000 $980,000 $185,000 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. Right-of-use Lease Payments Asset/Lease Payable Situation 11 Situation 2 Situation 3
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