On January 1, 2022.XYZ.Lesses leased equipment from Bay. Manufacturing at a Price of $175,946 Bay Manufacturing has a cost of $124,000 in the asset Losse secifes d annual payments beginning January 1, 2022. and on each January 1 thereafter through 2025 The dyear term ends on December 31, 2025 Bay Manufacturing estimates a useful life of 6 years Bay Manufacturing estimates a residual value of $25,000 . The residual value will be Guaranteed by the Lessee XYZ Les agrees that the equipment will be worth at lease $25,000 or more at the end of the lease term There is no purchase option, and the equipment reverts back to the Lessor at the end of the 4-year period The implicit rate on the lease is 6%, and XYZ Less is aware of that rate Assume Straight Line Depreciation is used on the Right of Use Asset PVAD Factor, 41-5% 3.72325 PVAD Factor na 5,5% 4.54595 PV of $1 Factor n=4 -5% 82270 PV of $1 Factor, n=5,5% 78353 What would be the Lease Payments that Bay Manufacturing Lessor would require from XYZ Lessee? O a $30,810 Ob $42.000 O c $47,524 Od $38,000 O e $44,236 At what amount will the Bay Manufacturing Lessor capitalize a Lease Receivable asset on the Balance Sheet? O a $176.945 O b. $181,377 O c $156,377 O d. 5151,945 O e $168.000 PV of S1 Factor, n=5, -5% 78353 At January 1.2023date of second Lease payment, Bay Manufacturing Lessor will record a journal entry that includes a O a Credit to Lease Receivable for $42,000 Ob Credit to Lease Receivable for $35,253 O Debit to Lease Receivable for $8,847 O d. Credit to Interest Revenue for $6.747 O e Debit to Interest Expense $6.747 PV of $1 Factor 5,15% 78353 At what amount will XYZ Lessee capitalize a Right-Of-Use Asset and Lease Liability O a $168,000 Ob S151,945 O c:S176 945 O d. $193,000 O e $156,377 Al December 31, 2022 end of the first year. XYZ Lesse will record a journal entry that includes a O a Credit to Lease Liability for $5,719 ob Credit to Lease Liability for $6,747 OC. Debit to Lease Liability for $42,000 Od Debit to interest Expense for $7 819 O e Credit to interest Expense for $7,819