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Can someone help me with his please? I have been trying to find the answer but I am not getting it On January 1, 2021,
Can someone help me with his please? I have been trying to find the answer but I am not getting it
On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC. Portions of the United Leasing's lease amortization schedule appear below: (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.) Effective Decrease in Outstanding Jan. 1 Payments Interest Balance Balance 2021 141,014 2021 12,50 12,5ee 128,514 2022 12,500 10,281 2,219 126,295 2023 12,500 10, 184 2,396 123,899 2024 12,500 9,912 2,588 121,311 2025 12,500 9,705 2,795 118,516 2026 12,500 9,481 3,019 115,497 11 2038 2039 2840 2841 12,500 12,500 12,500 39,472 4,898 4,290 3,633 2,924 7,602 8,210 8,867 36,548 53,625 45,415 36,548 Required: 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.) 3. What is the effective annual Interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.) 5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.) 6. What is United's net Investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.) 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole dollar.) 20 years 1. 2. 3 % 4. Lease term Asset's residual value Effective annual interest rate Lease payments for United Lease payments for NIC Net investment Total effective interest revenue Right-of-use asset 5. 6. 7. 8Step by Step Solution
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