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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $18,000 are payable at the beginning of each
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $18,000 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 Lease term (years) Asset's useful 1life (years) Lessor's implicit rate (known by lessee) Residual value: 10% 10% 10% 10% 0 7,200 3,600 Guaranteed by lessee Unguaranteed 0 3,600 $ 7,200 Purchase option: After (years) Exercise price Reasonably certain? none n/a $8,60 2,600 $4,600 n/a no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation A. The lessor's 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's 4. Lease payments 5. Right-of-use asset 6. Lease payable
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