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Everything that is already in the table is correct. I can't figure out the blank ones. Each of the four independent situations below describes a
Everything that is already in the table is correct. I can't figure out the blank ones.
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $10,500 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 5 Situation 2 3 5 5 6 6 10% 10% 4 5 5 10% 10% 0 $ 4,200 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? $ 2,100 $ 2,100 0 $ 4,200 none n/a n/a 4 $ 7,100 5 $ 1,100 3 $ 3,100 no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 A. The lessor's 1. Total lease payments $ 52,500 52,500 52,500 52,500 56,700 43,784 46,392 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 52,500 43,784 52,500 43,784 43,784 52,500 43,784 43,784 43,784Step by Step Solution
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