Question
Exercise 15-14 Calculation of annual lease payments; residual value [LO15-5, 15-6, 15-8] Each of the four independent situations below describes a capital lease in which
Exercise 15-14 Calculation of annual lease payments; residual value [LO15-5, 15-6, 15-8]
| Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 andPVAD of $1) (Use appropriate factor(s) from the tables provided.) |
| Situation | ||||||||||||||||||
| 1 | 2 | 3 | 4 | |||||||||||||||
| Lease term (years) | 5 | 8 | 6 | 9 | ||||||||||||||
| Lessors rate of return | 9 | % | 10 | % | 8 | % | 11 | % | ||||||||||
| Fair value of leased asset | $ | 69,000 | $ | 369,000 | $ | 94,000 | $ | 484,000 | ||||||||||
| Lessors cost of leased asset | $ | 69,000 | $ | 369,000 | $ | 64,000 | $ | 484,000 | ||||||||||
| Residual value: | ||||||||||||||||||
| Guaranteed by lessee | 0 | $ | 69,000 | 0 | $ | 49,000 | ||||||||||||
| Unguaranteed | 0 | 0 | $ | 26,000 | $ | 34,000 | ||||||||||||
| Determine the annual lease payments for each situation: |
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Aat Management Accounting Budgeting
Authors: BPP Learning Media
1st Edition
1509718400, 978-1509718405
