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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,000 are payable at the beginning of each

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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,000 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.) 1 5 5 8% Situation 2. 5 6 8% 3 5 6 8% 4 5 8 8% $ 6,000 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? $ 3,000 $3,000 0 $ 6,000 none n/a n/a 4 $ 8,000 no $ 2,000 $ 4,000 yes no Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. Situation 1 2 3 4 A. $ 75,000 81,000 78,000 X 49,000 The lessor's: 1. Total lease payments Gross investment in the 2. lease 3. Net investment in the lease 75,000 81,000 81,000 55,000 59,891 X 63,974 X 63,974 X 46,593 B. 78,000 X 49,000 X The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 75,000 59,891 X 59,891 X 81,000 X 63,974 X 63,974 x 61,933 X 41,830 X 41,830 61,933 X

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