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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 lessors implicit rate of return.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Situation
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 $ $
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 rightofuse asset and a lease liability, for each of the above situations.
Can you please make a chart with situations on the left and Lease Payments, Residual Value guarantee, PV of lease payments, PV of residual value guarantee, and Lease Liability as columns. This is the same setup as similar questions uploaded to chegg. Thank You!!
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