JEBFOR, Inc. Enters into a contract to lease equipment from DICE Supply for a period of five years. The lease calls for annual payments of $700 at the end of each year and JEBFOR's discount rate for this transaction is 6.2%. The fair value of the equipment is $2,933 at the beginning of the lease.

Required: Calculate the lease liability for JEBFOR, the lease receivable for DICE and the rate implicit in the lease under each of the following assumptions about the residual value (RV) of the equipment and the amount guaranteed by JEBFOR (GRV):

CASE___ A____ B_______ C______D

RV______ -___ 1,200___ 1,200___ 600

GRV _____-___ 1,000___ 1,200__ 1,000