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A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a eight-year lease term (also the asset's useful

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A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a eight-year lease term (also the asset's useful life), with the first payment on January 1 , the beginning of the lease. The interest rate is 4%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $128,000. Required: a. Determine the price at which the lessor is "selling" the asset (present value of the lease payments). b. Create a partal amortization table through the second payment on January 1 , Year 2 c. What would be the increase in earnings that the lessor would report in its income statement for the first year ended December 31 (ignore taxes)? Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. EVA of \$1. PVA of \$1. EVAD of \$1 and PVAD of \$1) Complete this question by entering your answers in the tabs below. What would be the increase in earnings that the lessor would report in its income statement for the first year ended December 31 (ignore taxes)? Complete this question by entering your answers in the tabs below. Determine the price at which the lessor is "selling" the asset (present value of the lease payments). Note: Round your answers to nearest whole number and round percentage answer to 1 decimal place. Complete this question by entering your answers in the tabs below. Create a partial amortization table through the second payment on January 1, Year 2. Note: Enter all amounts as positive values. Round your answers to nearest whole number. Complete this question by entering your answers in the tabs below. What would be the increase in earnings that the lessor would report in its income statement for the first year ended December 31 (ignore taxes)? Note: Input decreases to income as negative amounts. Round your answers to nearest whole number

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