Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,500 are payable at the beginning of each year. Each is a finance lease for the lessee. (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 Lease term (years) 4 4 4 4 Assets useful life (years) 4 5 5 7 Lessors implicit rate (known by lessee) 9 % 9 % 9 % 9 % Residual value: Guaranteed by lessee 0 $ 5,800 $ 2,900 0 Unguaranteed 0 0 $ 2,900 $ 5,800 Purchase option: After (years) none 3 4 3 Exercise price n/a $ 7,900 $ 1,900 $ 3,900 Reasonably certain? n/a no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)

Phot-Serhat 5.png Sex alph + Add to Z X Edit & Cruise 16 A Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,500 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of S1, PV of S1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 25 points Situation 2 1 4 4 4 5 3 4 5 4 7 eBook 9% 9% 9% 9% Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? Print $5,800 $2,900 $2,900 $5,800 G References none 3 4 3 n/a $7,900 $1,900 $3,900 n/a no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's 4. Total lease payments 5. Right-of-use asset 6. Lease liability Type here to search 10:00 PM F AD 9/2000