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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

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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 lessee is aware of the lessor's implicit rate of return. (FV or $1. PV of $1. FVA Of $1. PVA of $1. FVAD of $1 and PVAD Of 51) (Use appropriate foctor(s) from the tables provided.) Lease tern (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 1 4 20% $61,000 $61,000 Situation 2 7 5 11% 9% $361,000 386,000 $361,000 $56,000 4 8 12% $476,000 $476,000 @ $ 61,000 518,000 $ 18,000 $ 30,000 $ 35,000 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 night-of-use asset and a lease liability, for each of the above situations (Round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Residual PV of PV of Residual Right of use Lease Value Lease Value Payments Asset/Lease Guarantee Payments Guarantee Liability $ 17,494 03 61,000s 05 61,000 S 69,018 OS 361 000 $ 0S 361,000 $ 17525$ OS 74,301s OS 74301 s 83,0135 35,000 $461,8645 14,136 3 S 476.000 Situation 1 Squation 2 Situation 3 Situation 4

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