a. determine the amount of the monthly lease payment using present value tables, a financial calculator, or excel functions. (round factor values to 5 decimal places eg. 1.25124 and final answer to 2 decimal places eg. 52.75)

Ivanhoe Corp., which uses ASPE, leases a car to Jaimme DeLory on June 1, 2020. The term of the non-cancellable lease is 48 months. The following information is provided about the lease. 1. 2. 3. The lessee is given an option to purchase the automobile at the end of the lease term for $5,600. The automobile's fair value on June 1, 2020, is $29,700. It is carried in Ivanhoe's inventory at $21,000. The car has an economic life of seven years, with a $1,800 residual value at the end of that time. The car's estimated fair value is $10,100 after four years, $7,500 after five years, and $2,500 after six years. Ivanhoe wants to earn a 12% rate of return (1% per month) on any financing transactions. Jaimme DeLory represents a reasonable credit risk and no future costs are anticipated in relation to this lease. The lease agreement calls for a $1,300 down payment on June 1, 2020, and 48 equal monthly payments on the first of each month, beginning June 1, 2020. 4. 5. 6. Ivanhoe Corp., which uses ASPE, leases a car to Jaimme DeLory on June 1, 2020. The term of the non-cancellable lease is 48 months. The following information is provided about the lease. 1. 2. 3. The lessee is given an option to purchase the automobile at the end of the lease term for $5,600. The automobile's fair value on June 1, 2020, is $29,700. It is carried in Ivanhoe's inventory at $21,000. The car has an economic life of seven years, with a $1,800 residual value at the end of that time. The car's estimated fair value is $10,100 after four years, $7,500 after five years, and $2,500 after six years. Ivanhoe wants to earn a 12% rate of return (1% per month) on any financing transactions. Jaimme DeLory represents a reasonable credit risk and no future costs are anticipated in relation to this lease. The lease agreement calls for a $1,300 down payment on June 1, 2020, and 48 equal monthly payments on the first of each month, beginning June 1, 2020. 4. 5. 6