7.69 points Skipped At January 1, 2021, Caf Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $28,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $198,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. Crescent records depreciation using the straight-line method. Crescent seeks a 11% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease. (EV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.). 8 00 dock References Required: 1. What will be the effects of the lease on Crescent's earnings for the first year (ignore taxes)? (Enter decreases with negative numbers.) 2. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Crescent (ignore taxes)? (For all requirements, round your intermediate calculations to the nearest whole dollar amount.) 1 Effect on eamings 2 Equipment balance (net, end of year) Deferred lease revenue TABLE 1 Future Value of $1 FV- $1(1+) 3.5% 4.0% 4.5% 1.0% 1.5% 2.0% 2.596 3.0% 5.0% 5.5% 1101000 101500 102000 102500 1.03000 1.03500 1.04000 104500 1.05000 1.05500 2 1.02010 1.03022 104040 1.05063 106090 1.07123 1.08160 1.09203 110250 111303 3103030 104568 1.06121 107889 1.09273 1.10872 1.12486 114117 115763 1.17424 4 104060 1.06136 1.08243 110381 112551 114752 116986 119252 121551 123882 5 105101 107728 110408 113141 1.15927 1.18769 121665 124618 127628 1.30096 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 20.0% 1.00000 107000 1.08000 1:09000 1:10000 1.11000 112000 120000 1.26248 1.33823 112360 1.14490 116640 1.18810 1.21000 123210 125440 1.19102 1.22504 125971 1.29503 133100 136763 1.40493 1.31000 1.36049 141158 146410 1.51807 157352 140255 1.46933 1.53867 161051 1.68506 1.76234 144000 1.72800 2.07360 2.48832 9 10 6 1.06152 1.09344 112616 115969 1.19405 1.22926 126532 1.30226 134010 1.37884 7 107214 110984 114869 118869 122987 1.27228 1.31593 1.36086 140710 1.45468 108286 112649 1.17166 121840 126677 131681 136857 142210 1.47746 1.53469 1.09369 1.14339 1.19509 124886 130477 1.36290 1.42331 1.48610 155133 1.61909 1:10462 1.16054 1.21899 1.28008 134392 141060 148024 1.55297 162889 170614 1.41852 150363 1.59385 168948 1.79085 1.50071 158687 1.67710 1.77156 187041 197582 1.60578 1.71382 182804 194872 221068 2.07616 1.71819 115091 199256 2.14359 2.30454 247596 183846 1.99900 217189 2.35795 2.558004 277308 196715 215892 283942 236736 2:59574 20598 3.58318 4.29982 5.15978 3.1038 0.19174 11 1.11567 117795 1.24337 131209 138423 145997 1.53945 142285 171034 180009 12 1.12683 1.19562 126824 134489 142576 151107 1.60103 1.49588 1.79586 1.90121 13 113809 1.21355 129361 1.37851 146853 156396 1.66507 177220 1.88565 2.00577 14 114947 123176 131948 141297 151259 161869 1.73168 185194 197993 2.11609 15 1.10097 1.25023 134587 1.44830 155797 1.67535 1.80094 1.93528 207893 223248 16 1.17258 1.26899 1.37279 1.48451 160471 1.73399 187298 202237 2.18287 235526 17 118430 128802 140024 152162 165285 179468 194790 211338 2.29202 2.48480 18 1.19615 1.30734 142825 155966 1.70243 1.85749 2.02582 2.20848 240662 2.62147 19 120811 132695 145681 159865 175351 1.92250 210685 2.30786 2.52695 2765651 20 122019 134686 148595 1.63862 180611 198979 2.19112 241171 2.65330 291776 21 123239 136706 151567 1.67958 1.86029 2.05943 2.27877 252024 278596 3.07823 25 128243 145095 164061 1.85394 209378 2.36324 266584 300543 3.38635 3.81339 30 1.34785 156308 181136 209757 242726 2.80679 3.24340 3.74532 4.32194 4.98395 40 148556 1.81402 2.20804 2.68506 3.26204 3.95926 480102 511636 703999 8.51331 189830 2.10485 2.33164 258043 285312 201220 225219 251817 2.81266 3.13843 213293 240985 271962 3.06580 345227 226090 2.57853 293719 3.34173 379750 2.39656 275903 3.17217 3.64248 397031 254035 295216 342594 459497 269277 3.70002 3.15882 432763 505447 2.85434 3.37993 3.99602 4.71712 555992 1.02560 431570 3.61653 611591 5.14165 5.60441 3.20714 3.8096 466090 672750 5.31089 5.89509 6.54355 7.88997 6.13039 050004 148841 22.18611 26 62333 7.26334 8.00231 8.61276 31.94800 964629 3831760 94917 10.80385 4600512 95.39632 339956 4.14056. 5.03383 7.40025 610881 4.29187 542743 6.ME 862308 1083471 13.58546 17.00006 5.74369 761226 10.06266 13.26768 1744940 22.89230 29.95992 10.28572 1497446 21.72452 3140942 45 25926 65.00087 93.05097 1469 771601 237 37631 3.15176 347855 349845 3.89598 743006 891610 3.88328 4.36349 431044 10.49912 12.43918 4.17725 4.78459 5.47357 15.40702 TABLE 2 Present Value of $1 $1 PV (2+1) 10% 15% 3.3% 70% 5.0% 9.0% 20 20% 2.5% 3.0% 4.0% 45% 5.0% 53% 60% 1 099010 098522 098039 097561 097087 096618 096154 095694 095238 0.94787 094340 093458 0.92593 091743 090909 050090 089286 03333 2 098030 097064 050117 095181 094260 093351 092456 091573 090703 089545 0.39000 087344 85754 054168 082645 011162 0.79719 009444 3097059 095632 094232 092860 091514 090194 088900087530 086384 085161 013962 0.81630 079383 077218 075131 073119 071178937870 4 096098 0.94218 092385 090595 088849 087144 035480 083856 082270 080722 079209 0.76290 073503 070643 048501 065873 043552 048225 5 095147 092826 090575 088385 086261 034197 0.82193 080245 0.78353 076513 074728 071299 008058 06499) 0.62092 0.59543 054743 040188 60.94205 0.91454 0.88797 0.36230 0.83749 081350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 063017 059427 036447 053464 050063 035450 1093272 090103 087056 084127 081309 0.78599 075992 0.73483 071068 068744 0.66506 062275 058349 054703 051116 048166 043235 027908 8092348 088771 085349 082075 0.78941 075941 073009 070319 0.67664 065160 062741 058200 054027 0.50187 0.46653 043393 045388 0.23257 11 091434 087459 083676 630073 0.76642 073375 070259 067290 064461 061763 059190 054391 050025 046043 042450 039092036062 10 090529 0.86167 082055 07812074409 070092 062556 064333 061191 058543 0.55839 050835 046319 042241 038554 035218 032197 16:51 11 0.39632 054891 0.80426 0.76214 072241 048495 864958 0.61620 0.58463 0.55491 0.53679 0.47509 842888 038753 035049 031728 028745013450 12 038745 083619 078849 074356 070138 066178 063450 0.58966 035664 052598 049697 044401 039711 035553 031861 028184 025668 011216 13 087866 082405 077503 072542 0.48095 061940 060057 056427 0.53032 0.49856 046854 041456 0.36770033818 028966 025751 022917 009346 14 086996 081185 075788 070773 066112 061775 0.57748 0.53997 050507 047257 044230 038782 034046 029925 026333 023299 020462 007789 15 055135 079985 074305 009047 004186 059489 055526 051672 048102 044793 0.41727 036245 031124 021454 021939 0209001827006491 16 085282 0.78803 0.72545 0.47362 8.42317 0.57671 053591 0.49447 0.45811 042458 0.39365 0.35875 829139 25287 21745 018829 016312 085409 17 084436 071619 071416 065720 0.60502 055720 051137 047318 045630 040245 037136 031857 027027 023107 0.19754 016953 014564 0.04507 18 081602 076491 070016 064117 038739 0.53836 049363 045280 041552 038147 0.35034 029586 025025 021199 0.17986 015282 013004 0.03756 19 082714 075501 068643 062555 057029 052016 047464 041330 039575 0.56158 033051 027653 023171 019449 016351 01376 01161 00SS 20 081954 074247 067297 001027 0.55368 0.50237 045639 041464 637689 0.34273 031100 025642 021455 017543 014564 012403 010367 000 21 081143 073150 0.41978 0.59539 0.53755 45557 043883 630679 635894 032406 0.29416 0.24151 0.1996 0.16370 013513 031174 0.09256 0.42174 24 076757 0.69954 062172 035288 0.49193 043796 0.39012 034770 0.31007 027666 024098 019715 015770 012640 030153 0081700061 000258 25 077977 068923 000953 053939 047761 042313 037532 033273 029530 026225 023300 018425 016002 011597 009230 07561 001882 0 28 075684 0.65910 057437 0.50048 043708 0.38165 0.33348 029157 025509 0.22332 019563 015040 11391 000955 000934 005382 004187 00607 29 074934 064936 0.56311 045566 042435 0.36675 032065 027902 0.24295 021108 018456 014056 010733 0.08215 006304 00454 001738 000504 003338800421 30 74192 0.43976 0.55387 047674 641199 835428 63832 93670 0.231.38 0.20064 0.37413 13137 0093807537 0.45731 60436 31 073458 061011 054125 040553 0.39999 034423 029646 025550 0.230M 0.19018 016425 012271 009201 00915 001210 005935 002900 000551 40 067165 055128 045289 037343 030658 025257 030829 017193 014305 011746 009722 80678 004601 001184 002209 00158 000075 000 ABLE 4 Present Value of an Ordinary Annuity of $1 PVA- 1 Ran Mtable Aph 178326 9.0% 100% 110% 12.0% 20.0% 0.92593 091743 090909 0.90090 059286 03333 175911 1.73554 1.71252 169005 152778 257710 253129 245685 244171 240183 210645 3.23922 330987 3.10245 3.03735 258871 3.88965 3.79079 3.69590 3.60478 2.99061 1.0% 1.5% 2.0% 1.5% 3.096 3.5% 4.0% 1 Q99010 0.98522 098039 097561 2 1.97040 1.95588 194156 1.92742 0.97087 191347 3 2.94099 291220 2.88388 2.85602 2.82861 4 390197 385438 380773 3.76197 5 4.85343 4.78264 4.71346 4.64583 4.5% 5.0% 0.96618 090154 095694 0.95238 1.89969 158609 187267 185941 280104 2.77509 2.74896 272325 269795 267301 262432 3.71710 1 3.67308 3.62990 3.58753 3.54595 3.50515 3.46511 3.38721 331213 4.57971 451505 445182 438998 432948 427028 4.21236 4.10020 3.99271 5.3% 094787 184632 6.0% 7.0% 094340 09345 183339 10000 2.0% 65.79545 5.69719 5.40143 5.50813 5.41719 5.32855 7 6.72819 659821 647199 765168 748593 7.32548 98.56002836052 5.24214 5.35787 507569 4.99553 6.34939 623028 611454 600205 589270 5.78637 5.68297 7.17014 7.01909 6.87396 6.73274 659589 646321 633457 16224 797087 7.78611 7.00709 743533 7,26879 7.10782 695220 10 947130 9.22218 98259 75206 833020 831661 11090 791272 7.72173 7.53763 9.00155 9.66333 76045 938507 52892 8.30641 911858 886325 4.91732 4.76654 4.42285 445592 435526 4.23054 411141 332551 5.58238 5.38929 5.20637 5.03295 486542 4.71220 456376 3.60459 620979 5.97130 574664 553482 333493 514612 496764 3.83716 630109 651523 624689 5.99525 3.75903 553705 332825 401097 7.30009 7.02358 6.71008 641706 614457 588923 505022 19247 7.13896 630519 6.49506 6.20652 593770 4.32704 753608 7.16073 63139 649236 619437 443922 790338 7.45690 710116 674987 642355 453268 24424 7.78615 736609 6.98187 662517 461057 806069 7.60608 719087 681086 467547 11 10.36763 10.07112 9.78685 9.51421 9.25262 8.09254 7.85687 7.49567 12 11.25508 10 90751 10.57534 10.25776 9.95400 861852 838354 794269 13 12.13374 11.73153 1134837 10.98319 10.63496 10.30274 9.98565 9.68285 939357 9.11708 885268 835765 14 13.00370 12.54338 12.10625 11.09091 11.29607 10.92052 10.56312 10.22283 919864 958965 9.2949674547 15 13.86505 13.34323 12.84920 12.38138 11.93794 11.51741 1111839 10.73955 10.37966 10.03758 9.712251 9.10791 5594 16 14.71787 14.13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10.46216 10.10590 9.44665 17 1556225 14.90765 14.29187 11.71220 13.16612 1265132 12 16567 11.70719 11.27407 10.36461 10477261 976322 18 11.40992 8.85137 831256 782371 7.37916 6.97399 4.71956 9.12164 54363 802155 734879 711963 477463 10 05909 9.37189 87556) 20141 770162 724967 4.81219 10.33560 960360 895011 36492 783929 736578 434350 9.12855 8.51356 796133 746944 486958 10.59401 981815 16.39827 15.67256 14.99203 1435336 13.75351 1318968 12.65930 12.15999 11 68959 11.24607 1082760 19 1722601 16.42617 15.67846 14.97889 14.32380 13.70984 13.13394 1259329 12.08532 11.60765 1115812 20 1804555 17.16564 1635143 15.58916 1437747 14.21240 13.59033 1300794 12.46221 1195038 21 18.85698 17.90014 17.01121 25 22.02316 20.71961 19.52346 30 25 80771 24 01584 16.18455 15 42438 15.41502 14.69797 14.02914 13.40472 12.82115 12.27524 11.76405 1741315 1648151 15.62208 14.82821 14.09394 13.41393 12.78336 22.39646 20 93029 19.60044 18.39205 17.29203 16.28889 15.37245 14.53375 13.76483 10.33553 11 65358 12 40904 40 32.83409 29.91585 27.35548 25 10278 23.11477 21.35507 19.79277 1840158 17.15909 16.04612 15.04630 13.33171 9.29224 8.64569 807507 1.56200 4.39132 10.01680 10.67478 9.82258 907704 842374 754314 494759 1125778 10.27365 942691 889379 805518 497894 11.92461 10.25736 977905 895105 24378 4.99660 TABLE 5 Future Value of an Annuity Due of $1 FVAD (1+1) 1.0% 1.3% 2.0% 3.0% 3.5% 40% 4.5% 5.0% 2 2001 20452 2.0004 3 3.0604 4 1010 3 1 10100 10150 10200 1.0250 1.0300 1.0350 20756 20909 2.1062 21218 13900 31716 31525 31836 12140 32461 4.3523 42040 43543 43091 4.3625 44161 51520 52296 53001 51877 5.4554 55502 58330 10400 53% 60% 3.994 18450 1.0500 1.0550 1.0600 10700 10000 2.1330 21525 21630 2.1836 22140 2.3464 1.3105 33423 3.3740 44703 45256 43811 4.6371 57109 5.8019 5.9755 80% 9.4% 100% 14399 10900 22701 33001 33731 38410 4.7507 43006 49547 11.0% 12.0% 20.894 110001 13100 11200 1.2000 23100 23421 23344 3.7097 1.7795 52376 53528 6.3399 63233 6.7158 16.9129 71153 20400 84418 305 662135 4.3230 6.4343 65474 6.4625 6.774 6393 772857 74128 7850 7.7341 7.8921 80117 82142 83593 87540 9545 91393 934 9382 7.0191 83800 994622 97023 99497 102034 10.4639 307314 110061 10 10 5668 108633 11.1687 11.4835 113078 12.1420 124864 7.3430 72609 7.38 7.4540 79338 83004 83491 2216 23 94366 10.0285 104359 3094 112997 93021 10.0206 10.2563 30.4913 109780 14 12.1795 11.1640 157757 11.2882 11:5779 113754) 128164 141929 143374 157220 165487 123412 132068 113835 33.9710 14.7516 13.0433 16.5005 17.3312 18:3014 110546 1979 249587 31-1304 11 116825 12.0412 12.4121 12.7956 13.1920 13.4020 14.0258 12 12093 13210 11.440) 14 1404 14 817 151130 1502 13 13.9474 144504 14.9739 155190 160863 16.6770 172919 14 15.0569 156821 162934 16.9319 17.5989 18.2957 190236 15 16.2579 169324 17.6393 18.3802 191569 19 9710 208245 15,356 15. 14.4648 179771 19.140 20.343 21.7432 16.1599 16.7130 17:20 17.8821 191406 20955 21.9554 233227 252110 27029 179121 19.2926 200151 215505 25.0192 263750 290949 31.3938 19.78411 203786 21.4087 22.2200 24.1290 261521 2009 10.7725 21.7195 22.4575 216411 293243 246725 26 32.0034 345497 34.1405 47466 58.1959 3340543279 710151 41.7533 4421 36 17.4304 18.2014 19.9121 19.8647 20.7616 11.7050 22.6975) 17 186147 19 4854 20.4123 21.3063 224144 23.4997 246454 18 23.7417 24.3404 25.9964 19 109 20.7967 21.3406 22.9460 241109 253572 2667121 19 21.0190 221237 23.2974 24.5447 258704 27.2797 28.7781 20 22.2392 21.4705 24 7833 261813 270765 292895 309612 25855 280636 29.5390 27.1324 284812 31.3027 27.2129 29.9057 32.7600 30.3714 320660 32.7831 347193 36.7861 35.7856 38.9927 29.5402 32.7502 35.3737 39.5447 43.5000 473837 329990 564502 403013 44.3992 453959 SUMIT 35.3790 404463 4501 505 55.9995 624397 399955 443620 50.1401 362750 3.202 710524 09:4229 41 8652 806913 55.7645 45.0025 12451 1049306 127 1387 1517400 15880 2240256 21 30 35 1327 381008 4137944 45.000 490027 49.3753 55 0819 61 4100 09.0176 776633 114716 3248376 26.2990 273429 29.5368 31.3289 31.240 25 285356 303140 328700 35.0117 375550 40.1131 433117 53 4295 58.123 35.3034 37.5052 39.5645 42.3925 45.0657 54.456 61.3733 70.4027 0.2143 $1.5026 1700387 53.9000 78954 5663773 46.3700 581564 67.6765 923240 308.1818 136.99 1453319 501135 63.7524 097608 76.4194 1017 101.0730 122.3459 148.5752 180.9434 220.9132 2702904 1418.2579 75095 9.8265 1115467 126.196 144 1189 104 0477 2116096 279 7810 3682919 416 8518 645.8209591434 812.6294 Moky Due UI $1 (1+0) PVAD= (1+1) m 1.0% 1.5% 1 1.00000 1.00000 2 199010 1.98522 2.0% 1.00000 1.98039 1.97561 1.97087 196618 1.96154 33 4 3.91220 388388 3.85602 3.82861 3.80164 3.77509 3.74896 3.72325 369795 3.67301 3.62432 3.57710 3.53129 5 490197 4.85438 480773 4.76197 4.71710 4.67308 4.62990 4.58753 454595 4.50515 446511 4.38721 431213 423972 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 7.0% 8.0% 9.0% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.95694 1.95238 1.94787 1.94340 1.93458 192593 1.91743 297040 2.95588 2.94156 2.92742 291347 289909 2.88609 287267 2.85941 2.34632 3.94099 6.0% 10.0% 11.0% 12.0% 20.0% 100000 100000 100000 100000 190909 190090 189286 1.83333 2.83339 2.80802 278326 2.75911 273554 271252 2.69005 252778 3.45685 3.44371 340183 3.10648 416957 4.10245 403735 358873 6 5.85343 5.78264 5.71346 5.64583 7 6.79548 6.69719 6.60143 6.50813 5.57971 5.51505 5.45182 5.38998 5.32948 5.27028 5.21236 5.10020 6.41719 6.32855 6.24214 615787 6.07569 5.99553 5.91732 5.76654 7.72819 7.59821 7.47199 7.34939 723028 7.11454 7.00205 6.89270 6.78637 668297 6.58238 6.38929 9 865168 848593 832548 817014 8.01969 787396 7.73274 7.59589 746321 7.33457 7.20979 6.97130 10 9.56602 9.36052 9.16224 897087 8.78611 8.60769 843533 8.26879 8.10782 795220 7.80169 4.99271 4.88965 5.62288 5.48592 6.20637 6.03295 6.74664 6.53482 7.51523 7.24689 6.99525 4.79079 4.69590 4.60475 3.99061 535526 523054 511141 4.32551 586842 571220 556376 4.60459 6.33493 6.14612 5.96764 4.83716 6.75902 653705 632825 503092 8.02358 7.71008 8.13896 8.49867 894269 8.53808 7.416 7.34457 6.88923 6.65022 5.19247 7.80519 8.16073 749506 7.20652 6.93770 5.32706 11 10.47130 10.22215 9.98259 9.75206 9.53020 9.31661 9.11090 8.91272 8.72173 8.53763 8.36009 12 11.36763 11.07112 10.78685 10.51421 10.25262 10.00155 976045 952892 9.30641 909254 13 12.25508 11.90751 11.57534 11.25776 10.95400 10.66333 10.38507 10.11858 9.86325 9.61852 9.38384 14 13.13374 12.73153 12.34837 11.98318 11.63496 11 30274 1098565 10 68285 10.39357 10.11708 985268 9.35765 890375 15 14.00370 13 54338 13.10625 12.69091 12.29607 11.92052 11.56312 11 22283 10 89864 10.58965 10.29498 9.74547 9.24424 8.78615 836669 798187 7.62817 5.61057 48690 781369 7.49236 719437 543922 10336 7.74967 7.42355 553268 16 14.36505 14.34323 13.84926 13.38138 12.93794 12.51741 12.11839 11.73955 11.37966 11.03758 10.71225 10.10791 9.55945 9.06069 5.60605 5.19087 7.81086 5.67547 17 15.71787 15.13126 14.57771 1405500 13.56110 13.09412 12.65230 12.23402 11.33777 11:46216 11.10590 1044665 985137 9.31256 882371 837916 7.97399 5.72956. 18 16:56225 15.90765 15.29187 14.71220 14.16612 13.65132 13.16567 12.70719 12.27407 11.56-461 11:47726 10.76322 1012164 9.54363 902155 854879 811963 5.77463 19 17.39827 16.67256 15.99203 15.35336 14.75351 14.18968 13.65930 13.15999 12.68959 12.24607 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