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I can't figure out where I've gone wrong. Any help would be appreciated. 3 Each of the four independent situations below describes a sales-type lease
I can't figure out where I've gone wrong. Any help would be appreciated.
3 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.) 5 olnts 1 3 3 11% Situation 2 3 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? $ 7,400 0 $ 3,700 $ 3,700 C $ 7,400 none n/a n/a 2 $ 8,700 no 3 $ 2,700 no $ 4,700 yes 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 4 A. S 0 x 62.900 X 62,900 X 60,200 50,182 X 62.900 62.900 60,200 50,182 55,592 55,592 53,618 The lessor's 1. Total lease payments Gross investment in the 2. lease 3. Net investment in the lease The lessee's 4 Total lease payments 5. Right-of-use asset 6. Lease liability B. 55,500 50,182 50,182 55,000 X 55,592 X 55,500 52,887 52,887 X 55,500 53,618 53,618 55,592 XStep by Step Solution
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