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On June 30, 2021, Fly-By-Night Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require FlyBy-Night to make 20 annual payments

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On June 30, 2021, Fly-By-Night Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require FlyBy-Night to make 20 annual payments of $1,600,000 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 S1. PV of S1, EVA of \$1, PVA of S1. EVAD 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 lioblity on June 30,2021 , assuming that the first payment will be made on June 30,2022? 2. At what amount should Fly-By-Night record the lease lability on June 30,2021 , before any payments are made, assuming that the first payment will be made on June 30,2021 ? Complete this question by entering your answers in the tabs below. At what amount should Fly-By-Night record the lease liability on June 30,2021 , assuming that the first payment will be made on June 30,2022 ? (Round your final answers to nearest whole dollar amount.) TaEuE 2 Present Value of $1 me \$1 ste 3 Future Value of an Ordinary Annuity of $1 ism1 TADue 4 Present Value of an Ordinary Anmulty of $1 5 Future Value of an Annuity Due of $1 FVAD=[(1+if1](1+i CaEte 6 Present Value of an Annulty Due of $1 c1[1+in)1

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