Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,000 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)		3			3			3			3
Assets useful life (years)		3			4			4			6
Lessors implicit rate (known by lessee)		12	%		12	%		12	%		12	%
Residual value:
Guaranteed by lessee		0		$	5,600		$	2,800			0
Unguaranteed		0			0		$	2,800		$	5,600
Purchase option:
After (years)		none			2			3			3
Exercise price		n/a		$	7,800		$	1,800		$	3,800
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.)

Situation1234A.The lessors:1.Total lease payments$42,000selected answer correct47,600selected answer incorrect47,600selected answer incorrect45,800selected answer correct2.Gross investment in the lease42,000selected answer correct47,600selected answer correct47,600selected answer correct45,800selected answer correct3.Net investment in the lease41,084selected answer incorrect45,070selected answer incorrect45,070selected answer incorrect43,789selected answer incorrectB.The lessees:4.Total lease payments42,000selected answer correct42,000selected answer correct42,000selected answer correct45,800selected answer incorrect5.Right-of-use asset41,084selected answer incorrect41,084selected answer incorrect41,084selected answer incorrect43,789selected answer incorrect6.Lease liability41,084selected answer incorrect41,084selected answer incorrect41,084selected answer incorrect43,789selected answer incorrect

Help tonton below describes a les type lease in which annual lease payment of $14.000 are paya ochyachtince base for the less SPV SLEVA O SL PVA / 51. EVAD and EVAD hom the tables provided) 3 3 3 3 . 1 . 11.11. the Round your finanswers to nearest whole della Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar) Answer is not complete. Situation 1 2 3 $ 42,000 45,800 The lesson 1 Totalcase payments 2 Groen in the 3 Naistent in the lease 42.000 47,600 47.600 45 800 42.000 42.000 42.000 Totale poyments Piguet 5 o