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please, fill out this table below and correct the number with red cross. Each of the four independent situations below describes a sales-type lease in
please, fill out this table below and correct the number with red cross.
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,500 are payable at the beginning of each year. Each is a finance lease for the lessee. (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.) 1 4 4 9% Situation 2 3 4 4 5 5 9% 9% 4 4 7 9% $5,800 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? 0 $2,900 $2,900 0 $5,800 none n/a n/a $7,900 no 4 $1,900 no 3 $3,900 yes Situation 1 2 3 4 A. $ 58,000 58,000 58,000 47,400 58,000 63,800 63,800 47,400 The lessor's: 1. Total lease payments Gross investment in the 2. lease Net investment in the 3. lease The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 51,204 55,313 55,313 43,019 B. n| 58,000 51,204 51,204 58,000 51,204 51,204 58,000 51,204 51,204 47,400 43,019 43,019
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