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Oro uccount for the US CSSMent. P 15-9 tease-concepts; sales-type leases: guaranteed and unguaranteed residual value LC15-2, LO15-6 Each of the four independent situations below

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Oro uccount for the US CSSMent. P 15-9 tease-concepts; sales-type leases: guaranteed and unguaranteed residual value LC15-2, LO15-6 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $10,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Determine the following amounts at the beginning of the lease. A. The lessor's 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's 4. Lease payments 5. Right-of-use asset 6. Lease liability Situation 2 3 4 4 4 5 11% 4 5 11% 4 7 11% 11% Lease term (years) Asset's useful life (years) Lessor's Implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? o 0 $4.000 0 $2.000 $2,000 o $4,000 none n/a n/a 3 $7,000 4 $1,000 no 3 $3.000 yes no P 15-10 Sales-type lease; Durchase option Feasonably certain to be exercised before ease term ends: Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,000 beginning September 30, 2021, the beginning of the lease, and each quarter (December 31, March 31, and June 30) through June 30, 2024 (three-year lease term). The florist had the option to purchase the truck on September 29, 2023, for $6,000 when it was expected to have a animated seful life of the truck is four years. Mid-South Auto Leasing's quarterly 5.000 for the truck

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