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Item 1 3 points eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 1 Each of the four independent situations below describes a sales -

Item1
3
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eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 1
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,000 are payable at the beginning of each year. Each is a finance lease for the lessee.
Situation
1234
Lease term (years)5555
Assets useful life (years)5668
Lessors implicit rate (known by lessee)9%9%9%9%
Residual value:
Guaranteed by lessee $ 0 $ 4,800 $ 2,400 $0
Unguaranteed $ 0 $ 0 $ 2,400 $ 4,800
Purchase option:
After (years) none 453
Exercise price $ 7,400 $ 1,400 $ 3,400
Reasonably certain? no no yes
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Determine the following amounts at the beginning of the lease:
Note: Round your final answers to nearest whole dollar.

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