Information for four separate finance/sales-type lease scenarios is provided as follows: Complete the table, assuming that the lessee is aware of the lessor’s implicit lease rate.

Note : Round each amount to the nearest whole dollar.

	A	B	C	D
Lessor’s desired rate of return	6%	7%	6%	8%
Lease term	5	10	8	4
Fair value of underlying asset	$35,000	$140,000	$18,000	$230,000
Beginning or end of year payments	Beginning	Beginning	Beginning	End
Guaranteed residual value	0	12,000	0	80,000
Residual value expected by lessee	0	0	0	30,000
Unguaranteed residual value expected by lessor	0	0	3,500	0
Initial direct lease costs	250	1,000	0	1,200
Prepaid lease payment	0	1,500	0	0
Lessor lease payment
Lease liability
Right-of-use asset