Question
Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. (FV
| Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. (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 | ||||||||||||||||||
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| ||||||||||||||||||
| 1 | 2 | 3 | 4 | |||||||||||||||
| Lease term (years) | 5 | 8 | 6 | 9 | ||||||||||||||
| Lessors rate of return | 8 | % | 9 | % | 7 | % | 10 | % | ||||||||||
| Fair value of leased asset | $ | 63,000 | $ | 363,000 | $ | 88,000 | $ | 478,000 | ||||||||||
| Lessors cost of leased asset | $ | 63,000 | $ | 363,000 | $ | 58,000 | $ | 478,000 | ||||||||||
| Residual value: | ||||||||||||||||||
| Guaranteed by lessee | 0 | $ | 63,000 | 0 | $ | 43,000 | ||||||||||||
| Unguaranteed | 0 | 0 | $ | 20,000 | $ | 28,000 | ||||||||||||
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| Determine the annual lease payments for each situation: |
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Beyond Agile Auditing Three Core Components To Revolutionize Your Internal Audit Practices
Authors: Clarissa Lucas
1st Edition
1950508676, 978-1950508679
