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On 1 July 20X5 Funny Ltd (Lessee) and Muffin Ltd (Lessor) enter into a finance lease agreement with the following terms. At the end of

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On 1 July 20X5 Funny Ltd (Lessee) and Muffin Ltd (Lessor) enter into a finance lease agreement with the following terms. At the end of the lease term, the asset will be returned to Muffin. Lease term 6 Six lease payments in advance, each July 1. Each payment is $15,000 Guaranteed Residual value at the end of the lease term is $10,500 Unguaranteed Residual value at the end of the lease term is $11,500 Interest rate implicit in the lease is 5% What is the fair value of the asset? If the answer does appear, choose the nearest one. estion 1 t yet swered O a. $83,971 rked out of 0 O b. $87,777 Flag estion c. $96,359 O d. $92,552 O e. $97,180 estion 2 What is the balance of lease payable recognized by Funny on 1/07/20X5? If the answer does appear, choose the nearest one. yet O a. $93,971 swered rked out of 0 Flag estion O b. $87,777 O c. $72,777 O d. $81,359 O e. $83,971

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