Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19,500 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 $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.)

	Situation
		1			2			3			4
Lease term (years)		5			5			5			5
Asset?s useful life (years)		5			6			6			8
Lessor?s implicit rate (known by lessee)		13	%		13	%		13	%		13	%
Residual value:
Guaranteed by lessee		0		$	7,800		$	3,900			0
Unguaranteed		0			0		$	3,900		$	7,800
Purchase option:
After (years)		none			4			5			3
Exercise price		n/a		$	8,900		$	2,900		$	4,900
Reasonably certain?		n/a			no			no			yes

Gcsc BUGSAZTDM P x m MzGr HCanned'h x [EMS/Amines x \\E [athO'ThElerindepE x I: Eazhollhelamlndepen x 6 C 0 ' G) ellumheducalion cum/hmipx'f 7525\"575380462771491486348279 g) E E ' Save&Exit H Submit ' 11' uaiiie 1'00 palms Each ultne fuul llldepelldelll siluallnlls beluw describes a saleslype lease in which annual lease payments ulilEijuD are payable al llie begllllllllg uleacll yeal, Each is a nance lease lurltie lessee, (FV ml 51, PV 0f1I,FVA 0711, WA ul m, FVAD ul l and PVAD ul m) [Use apprupriau faclos) from the tables provided.) Silualian 1 2 3 4 Leaselerrn (years) 5 5 5 5 Assets useliii iile (years) 5 a a b Lessnrs impiieit raie (knuwn by lessee) 13% lav/i, 13% tan/i, Residuai yaiue: Guararlleed by lessee n s 7 500 5 3 900 n Unguarameed 0 0 0 3,900 5 7,800 Purchase uplion Aller (y ears) none 4 5 3 Exercise price We 5 B 900 $ Z 900 5 4 900 Reasonabiy cedain\" n/a no no yes Delerinine tne fullnwillg amuunls al the beginning ulllle lease: [Round youl flnal answers to nealesl wli ole nullar.) A Theiessnfs: i. Lease paymems 5 97,500 105,300 105,300 2 Gmssinvglmenlinmeiease 97,500 105,300 3 Nelinveslmeminlheiease 77,502 81,736 E Ttie iess ee's 4 Lease payment: 87,500 87 500 87,500 5 Righlsnlsuse assel 77,502 77,502 6 Lease payabie 77,502 77,502 Referlnoes