Question
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $100,000 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 $100,000 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 | ||||||
| 1 | 2 | 3 | 4 | |||
| Lease term (years) | 7 | 7 | 8 | 8 | ||
| Lessor's and lessee's interest rate | 9% | 11% | 10% | 12% | ||
| Residual value: | ||||||
| Estimated fair value | 0 | $50,000 | $8,000 | $50,000 | ||
| Guaranteed by lessee | 0 | 0 | $8,000 | $60,000 | ||
Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers to the nearest whole dollar amount.)
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Taxation Of Individuals And Business Entities 2019 Edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver
10th Edition
1259918394, 978-1259918391
