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answer if you are 100% sure. Each of the four independent situations below describes a sales-type lease in which annual lease payments of $125,000 are
answer if you are 100% sure.
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $125,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (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.) 1 Situation 2 3 6 7 4 7 6 12% 8% 10% 11% Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee 0 $55,000 $8,500 $55,000 0 $8,500 $65,000 0 Determine the following amounts at the beginning of the lease (Round your intermediate and final answer to the nearest whole dollar amount.): Situation 2 3 A The lessor's 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B The lessee's 4 Total lease payments 5. Right-of-use asset 6. Lease liabilityStep by Step Solution
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