Each of the four independent situations below describes a sales-type lease in which annual lease payments of $18,500 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 $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1 3 3 11% Situation 2 3 3 4 4 11% 11% 4 3 6 11% 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? 0 0 $ 7,400 0 $3,700 $3,700 0 $ 7,400 none n/a n/a 2 $8,700 no 3 $ 2,700 no 3 $4,700 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 $ 55,500 55,500 50,182 62,900 62,900 55,592 62,900 62,900 55,592 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 55,500 50,182 50,182 55,500 50,182 50,182 55,500 50,182 50,182 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $18,500 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 $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1 3 3 11% Situation 2 3 3 4 4 11% 11% 4 3 6 11% 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? 0 0 $ 7,400 0 $3,700 $3,700 0 $ 7,400 none n/a n/a 2 $8,700 no 3 $ 2,700 no 3 $4,700 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 $ 55,500 55,500 50,182 62,900 62,900 55,592 62,900 62,900 55,592 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 55,500 50,182 50,182 55,500 50,182 50,182 55,500 50,182 50,182
