On January 1, 2019, Raven Company leased copiers from Ivan Company for a 7-year period ending on December 31, 2025. At the time of the lease agreement, the fair value of the copiers was $500,000. The lease requires 7 annual payments of $78,256 on December 31st each year. The first payment was made at the inception of the lease on January 1, 2019. The lease requires a guaranteed residual value of $100,000. On January 1, 2019, the expected residual value was $120,000 and the useful life of the copiers was 12 years. The lease included a 12% discount rate.

Use the Copier Lease worksheet to: List the inputs needed to determine the lease payment and present value of minimum payments in cells A4:B10. (you may have empty lines) Use Excel time value of money functions to determine the Present Value of the minimum lease payments in cell B11. State the type of lease in cell B12. Use Excel formulas or functions to complete the amortization table located in cells D2:H25. (you may have empty line

A - Copier Lease Effective Decrease in Outstanding Interest Balance Balance Date Payment List PV Calculation Inputs: Present Value of Min Payments