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consider $ 675,000 as lease payment Each of the four independent situations below describes a sales-type lease in which annual lease payments of o are
consider $ 675,000 as lease payment
Each of the four independent situations below describes a sales-type lease in which annual lease payments of o 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.) Situation Lease term (years) Lessor's and lessee's interest rate Estimated fair value $50,000 $8,000 $50,000 Guaranteed by lessee 7 90 2 7 115 8 101 8 120 Residual values 0 o $8,000 $60,000 Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers to the nearest whole dollar amount.) Situation 2 3 A The lessor's 1. Lease payments 2. Gross Investment in the lease 3. Net investment in the lease The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable BStep by Step Solution
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