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Please kindly show work. thanks Each of the four independent situations below describes a sales-type lease in which annual lease payments of $175,000 are payable
Please kindly show work. thanks
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $175,000 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 $1) (Use appropriate factor(s) from the tables provided.) 1 Situation 2 3 8 9 10% 9% 8 4 9 11% 12% Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee $65,000 $9,500 $9,500 $65,000 $75,000 e Determine the following amounts at the beginning of the lease (Round your intermediate and final answer to the nearest whole dollar amount.): Situation 1 2 3 4 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 payableStep by Step Solution
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