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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 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 rate of return Fair value of lease asset Lessor's cost of lease asset Besidual value: Estimated fair value Guaranteed fair value 10% $64,000 $64,000 111 $364,000 $364,000 $89,000 $59,000 $479,000 $479,000 0 $ 64,000 0 $21,000 $21,000 $ 33,000 $ 38,000 Required: 3. & 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 Assoulease Liability Situation 1 Situation 2 Situation 3 Situation 4 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 Lease term (years) Lessor rate of return Fair value of lease asset Lessor's cost of lease asset Besidual value: Estimated fair value Guaranteed fair value 10% $64,000 $64,000 111 $364,000 $364,000 $89,000 $59,000 $479,000 $479,000 0 $ 64,000 0 $21,000 $21,000 $ 33,000 $ 38,000 Required: 3. & 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 Assoulease Liability Situation 1 Situation 2 Situation 3 Situation 4

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