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kindly show work. thanks Each of the four independent situations below describes a sales-type lease in which annual lease payments of $11,000 are payable at
kindly show work. thanks
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $11,000 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.) Situation 1 3 4 2 6 6 6 6 11% 6 9 7 11% 7 11% 11% $ 4,400 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? $ 2,200 $ 2,200 $ 4,400 none n/a n/a 5 $ 7,200 no 6 $ 1,200 no 3 $ 3,200 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 A. The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payableStep by Step Solution
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