I would like to know how the % was obtained for cumulative PVAF in the exercise 15-1 of Chapter 15 of intermediate accounting 9th Edition by the authors Spiceland, Nelson, Thomas. I see the answer but I have tried with a calculator to get the same percentage answer and even through Excel and I do not get the results. I need to see the actual steps done to get the answers for Cumulative PVAF @ 5% For 4 Years, either I do not understand it how to get the answers your expert obtained for situation 1 & 3 of 3.72 and for situation 2 &4 of 3.55. I know that I must either be doing something wrong, entering the figures incorrectly in the calculator and excel, or I simply am not understanding how to input the numbers correctly to get the correct answer. Please see attachment below:

Situation 2 3 Lease term (years) Asset's useful life (years) 6 Asset's fair value $44,000 $43,000 $41,000 $39,000 Purchase option that is reasonably certain to be exercised? No No No Beg. of yr. Annual lease payments End of yr. Beg. of yr. End of yr 5% 6% 5% Lessor's implicit rate (known by lessee) 6% 5% 5% 5% 5% Lessee's incremental borrowing rate Classification of lease Particulars Situation 1 l Situation 2 Situation 3 Situation 4 Lease term (Years Asset's useful life (Years Asset fair value $44,000 $43,000 S41,000 S39,000 Yes 0 Of Yr End of Yi Annual lease Of Yr End of Yr Lessor's 5% 5% by lessee rate Lessee's incremental borrowing rate 500 Classification of lease Particulars SituationSituation 2 Situation 3Situation 4 $10,000 $10,000 S10,000 10,000 Annual lease Discount rate to calculate Min lease 5% 590 590 5% Cummulative pvAFa 590 For 4 vears 3.72 3.72 3.55 37,200 Minimum lease % of lease term as compared to Economic life of asset (Lease term+Useful life) $37,200 S35,500 S35,500 67% 80% 6790 67% % of present value of Min lease payment as compared to Fair value of asset (MLP FV) 83% 91% 91% 85% Classification of lease ating lease Capital ease Capital lease Capital lease Since Since Since Since all the Present Bargaining Present purchasevalue of option is stated 4 value of criterias are not | MLP > 90% | MLP > 90% , Itof FV,It Reason ! t, it comes comes under comes under comes under lease. capital lease. capital lease. capital lease