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On June 30, 2018, Fly-By-Night Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require Fly-By-Night to make 200 annual payments

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On June 30, 2018, Fly-By-Night Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require Fly-By-Night to make 200 annual payments of $400,000 on each June 30. Generally accepted accounting principles require this lease to be recorded as a liability for the present value of scheduled payments. Assume that a 7% interest rate properly reflects the time value of money in this situation. (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.) Required: 1. At what amount should Fly-By-Night record the lease liability on June 30, 2018, assuming that the first payment will be made on June 30, 2019? 2. At what amount should Fly-By-Night record the lease liability on June 30, 2018, before any payments are made, assuming that the first payment will be made on June 30, 2018? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 At what amount should Fly-By-Night record the lease liability on June 30, 2018, assuming that the first pa on June 30, 2019 Table or calculator function PVA of $1 1,700,000(X Payment: 20 n = 7% 18,009,817X PV-6/30/2018: Required 1 Required 2 > Required 2 Required 1 At what amount should Fly-By-Night record the lease liability on June 30, 2018, before any payments are that the first payment will be made on June 30, 2018? Table or calculator function: PVAD of $1 Payment 17,000,000X $ 20 n = 7% 19,270,520 (X PV -06/30/2018: $ Required 1 Required 2

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