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Hi, I need help solving this problem. Attach is the question and the Present Value to use. Problem 159 (Algo) Lease concepts; sales-type leases; guaranteed
Hi, I need help solving this problem. Attach is the question and the Present Value to use.
Problem 159 (Algo) Lease concepts; sales-type leases; guaranteed end unguaranteed residual value [L015-2, 15-6] Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. Each is a finance lease for the lessee. PV of S], FVA of SI PVA of $1, FVAD of and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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? Situation a none $ 5, aaa a $ 7,5aa $ 2,saa $ 2,5aa $ 1,5aa $ 5,aa $ 3,5aa yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) A The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease & The lessee's: s 37,500 37,500 37,500 2 45,000 50,000 3 39,000 44,000 4 41,000 46,000 4. 5. 6. Total lease payments Right-of-use asset Lease liability
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