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Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The
Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (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 1 2 3 4 7 58 10% 11% 9% $61,000 $361,000 $86,000 $476,000 $ 61,000 $361,000 $56,000 $476,000 Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual value: Estimated fair value Guaranteed fair value 12% 0 $ 61,000 0 $18,000 $18,000 $ 30,000 $ 35,000 0 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for above situations. (Round your PV factor answers to 5 decimal places and other answer to nearest whole dollar.) Lease Payments Residual Value Guarantee PV of Lease Payments PV of Residual Value Guarantee Right-of-use Asset/Lease Liability $ 35,898 0 $ 0 $ 17,949 $ 17,949 Situation 1 Situation 2 Situation 3 Situation 4 $ $ $ $ 0 61,000 18,000 30,000 0 Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (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 1 2 3 4 7 58 10% 11% 9% $61,000 $361,000 $86,000 $476,000 $ 61,000 $361,000 $56,000 $476,000 Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual value: Estimated fair value Guaranteed fair value 12% 0 $ 61,000 0 $18,000 $18,000 $ 30,000 $ 35,000 0 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for above situations. (Round your PV factor answers to 5 decimal places and other answer to nearest whole dollar.) Lease Payments Residual Value Guarantee PV of Lease Payments PV of Residual Value Guarantee Right-of-use Asset/Lease Liability $ 35,898 0 $ 0 $ 17,949 $ 17,949 Situation 1 Situation 2 Situation 3 Situation 4 $ $ $ $ 0 61,000 18,000 30,000 0 Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (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 1 2 3 4 7 58 10% 11% 9% $61,000 $361,000 $86,000 $476,000 $ 61,000 $361,000 $56,000 $476,000 Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual value: Estimated fair value Guaranteed fair value 12% 0 $ 61,000 0 $18,000 $18,000 $ 30,000 $ 35,000 0 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for above situations. (Round your PV factor answers to 5 decimal places and other answer to nearest whole dollar.) Lease Payments Residual Value Guarantee PV of Lease Payments PV of Residual Value Guarantee Right-of-use Asset/Lease Liability $ 35,898 0 $ 0 $ 17,949 $ 17,949 Situation 1 Situation 2 Situation 3 Situation 4 $ $ $ $ 0 61,000 18,000 30,000 0 Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (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 1 2 3 4 7 58 10% 11% 9% $61,000 $361,000 $86,000 $476,000 $ 61,000 $361,000 $56,000 $476,000 Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual value: Estimated fair value Guaranteed fair value 12% 0 $ 61,000 0 $18,000 $18,000 $ 30,000 $ 35,000 0 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for above situations. (Round your PV factor answers to 5 decimal places and other answer to nearest whole dollar.) Lease Payments Residual Value Guarantee PV of Lease Payments PV of Residual Value Guarantee Right-of-use Asset/Lease Liability $ 35,898 0 $ 0 $ 17,949 $ 17,949 Situation 1 Situation 2 Situation 3 Situation 4 $ $ $ $ 0 61,000 18,000 30,000 0
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