please please answer

Watson Co. entered into a lease arrangement for a truck on 1 April 20X2 that had the following terms: . The lease payments are $12,500 per year, payable each 1 April for four years. The lease may be renewed at the option of the lessor for a further five years for $3,600 per year. . Based on an allocation of the lease payment on relative stand-alone prices, the lease and non-lease components (maintenance) are $11,300 and $1,200 respectively. Expected amounts to be paid under the residual value guarantee is $15,000 at the end of the first lease term and $5,000 at the end of the second lease term. The leased asset has a useful life of ten years and a fair value of $70,000. The interest rate implicit in the lease is 7%. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) TABLE I-1: Present value of 1: (P/F, 1, n) 1 P/F = (1 + i)" n 2 3 4 4% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259 0.67556 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0,64461 0.61391 14% 0.87719 0.76947 067497 0.59208 0.51937 5 15% 0.8867 0.756 14 0.65752 0.57175 0.49718 6 7 8 0.45559 0.39964 0.35056 0.30751 0.26974 9 10 11 12 0.64958 0.62460 0.50057 0.57748 0.55526 13 0.43233 0.37594 0.32690 0.28426 0.24718 0.21494 0.18691 0.16253 0.14133 0.12289 0.58468 0.55684 0.53032 0.50507 0.48102 0.45811 0.43530 0.41552 0.39573 0.37689 14 15 0.23662 0.20756 0.18207 0.15971 0.14010 16 17 18 19 20 0.53391 0.51337 0.49363 0.47464 045639 0.12289 0.10780 0.09456 0.08295 0.07276 2% 2.5% 3% 0.98039 0.97561 0.97087 0.96117 0.95181 0.94260 0.94232 0,92860 0.91514 0.92385 0.90595 0.88849 0.90573 0.88385 0.86261 0.88797 0.86230 0.83748 0.87056 0.84127 0.81309 0.85349 0.82075 0.78941 0.83676 0.80073 0.76642 0.82035 0.78120 0.74409 0.80426 0.76214 0.72242 0.78849 0.74356 0.70138 0.77303 0.72542 0.68095 0.75788 0.70773 0.66112 0.74301 0.69047 0.64186 0.72845 0.67362 0.62317 0.71416 0.65720 0.60502 0.70016 0.64117 0.58739 0.68643 0.62553 0.57029 0.67297 0,61027 0.55368 0.65978 0.59539 0.53755 0.64684 0.58086 0.52189 0.63416 0.56670 0.50669 0.62172 0.55288 0.49193 0.60953 0.53939 047761 0.59758 0.52623 0.46369 0.58586 0.51340 045019 0.57437 0.50088 043708 0.56311 0.48866 0.42435 0.55207 0.47674 041199 0.46511 039999 0.53063 0.45377 0.388 M 0.52023 0.44270 0.37703 0.51003 043191 0.36604 0.50003 0.42137 03558 0,49022 0.41109 0.34503 0/48062 040107 0.33498 0,47119 039129 032523 0.46195 0,38174 031575 0.45289 0.30656 0.41020 1 26141 0.37153 022811 0.10686 0,09293 0,08081 0.07027 0.06110 0.16351 21 22 23 24 25 0.43883 0.42196 0.40573 0.39012 0.37512 0.35894 0.34185 0.32557 0.31007 0.29530 6% 7% 8% 9% 10% 11% 12% 0.94340 0.93458 0.92593 0.91743 090909 0.90090 0.89286 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.74726 0.71 299 0.68058 0.64993 0.62092 0.59345 0.56743 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0,45235 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.59190 0.54393 0.50025 0.46043 042410 0.39092 0.35061 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0,49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.44230 0.39782 0.34046 0.29925 0.26333 0.23199 0.20462 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 039365 0.33873 0.29189 0.25187 021763 0.18829 0.16312 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.33051 0.27651 0.23171 0.19449 0.13768 0.11611 0.31180 0.25842 0.21455 0.17843 014864 0.12403 0.10367 0.29416 0.24151 0.19866 0.16370 013513 0.11174 0.09256 0.27751 0.22571 0.18394 0.15018 0.12285 0.10067 0.08264 0:26 180 0.21095 0.17032 0.13778 0.11168 0.09069 0.07379 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.23300 0.18425 0.14602 0:11597 0.09230 0.07361 0.05882 0.21981 0.17220 0.13520 0.10639 0.08321 0.06631 0.05252 0.20737 0.16093 0.12519 0.09761 0.07628 0.05974 0,04589 19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03938 0:17411 0.13137 0.03938 0.07537 085731 0.04368 0.03338 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02080 0 15496 0.11474 0085210.06344 104735 0.03545 0.02561 0.14619 0.10723 0788 005820 6.04306 0.8194 002376 13791 0.10022 0.07305 0.05339 003914 0.62878 0.02121 0.13011 0.009355 0.0163 0.04899 003558 0.02502 2.01894 012274 0.08254 05262 0: 0M 6.032350.02335 0.01591 0 11579 0.18181 0.05799004123 0.0210400 1510 0.10924 D 8546 0053690.03783 1.02573001895 0.01318 0.10306 007146 0.0494 0347000 242000170801204 30.03181 0.02200015380301075 0.24761 0,03133 10 13 12 0.0193 1320.01315 0.06383 0.05599 0.04911 0.04308 0.03779 0.05313 0,04620 0.04017 0.03493 0.03038 26 27 28 29 30 003315 0.02908 102551 0.02237 0.01953 0.36069 0.34682 033348 0.32055 030832 0.29646 0.28506 0.27409 0.25355 0.25342 0.24367 0.2013 0.22529 0.21662 020929 32 33 34 0.281 24 026785 0.25509 24295 023138 0.22036 0.20987 0.19987 0.19035 0.18129 017255 0.164 0.15561 0.149.15 0 14205 0.02542 0.02297 0.01997 0.01737 0.01510 0.61313 0.01142 0.00993 0.00854 000751 001722 0.01510 2013 25 001152 001019 36 37 000653 0081 38 39 110 0.00124 000429 B105 4 15 01/20 50 0.14071 08 TABLE 1-2: Present value of an ordinary annuity of n payments of 1:(P/A, 1, n) 1 1- (1 + 1)" PIA= 1 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 3% 2% 2.5% 4% 5% 6% 7% 9% 8% 10% 11% 14% 15% 12% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91 743 0.90909 0.90090 0.89286 0.87719 0.86957 1.94156 1.92742 191347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.62571 1.73554 1.71252 1.69005 1.64666 288388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53129 2.48685 2.44371 2.40183 2.32163 2.28323 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16987 3.10245 3.03735 291371 2.85498 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.43308 3.35216 5.60143 5.50813 5.41719 5.24214 5,07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.88867 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.38929 5. 20637 5.03295 4.86842 4.71 220 4.56376 4.28830 4.16042 7.32548 7.17014 7.01 969 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14512 4.96764 4.63886 4.48732 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.94637 4.77158 8.98259 8.75206 8.53020 8.1 1090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.21612 5,01877 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.206525.93770 5.45273 5.23371 10.57534 10.25776 9.95400 9.38507 8.86325 8,38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5,66029 5.42062 11.34837 10.98318 10.63496 9.98565 9,39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.84236 5.58315 1210625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98 187 6,62817 6.00207 5.72448 1284926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.060697.60608 7.19087 6.81086 6.14217 5.84 737 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.379166.97399 6.26506 5.95423 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.548797.11963 6.37286 6,04716 14.99203 14.35336 13.75351 1265930 11.68959 10.82760 10.05909 9.37189 8.75563 8 20141 7.701627.24967 6.46742 6.12797 15.67846 14.97889 14,32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95011 836492 7.839297.36578 6,55037 6.19823 16.35143 15.58916 14.87747 13.59033 12 46221 11.46992 10.59401 981815 9.12855 8.51356 7.96333 7.46944 6.62313 6.25933 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 1083553 10.01680 9.29224 8.61869 8.07507 7.56200 6.68696 6.31 246 17.65805 16.76541 15.93692 14.45112 13.16300 12.04158 1106124 10.20074 9.44 243 8.77154 8.17574 7.64465 6.74 294 6.35855 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 11 27219 10:37106 9.58021 888322 8,26643 7.71843 6.79206 5.39884 18.91393 17.88499 16,93554 15 24696 13.79864 12.55036 11.46933 10.52876 970661 8.98474 8.34814778432 6.83514 6.43377 19.52316 18.42438 17.41315 15.62208 14.09394 12.78336 11.65358 10,674789.82258 9.07704 8.421747.84314 6.87293 6.46415 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998 9.92897915095 8.49806 7.89566 6.90608 6,49656 20 70690 19.46401 18.32703 16 32959 14.64303 13.21053 11.98671 10.93516 10.02558 9.23722 8,54780794255 6.935156.51353 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 1213711 1105108 10.11613 9.30657 8.601627.98442 6.95066 6.53351 21.84438 20.45355 19.18845 16.98371 15.14107 13,59072 12:27 767 11 15841 10.19828 9.36967 8.65011802181 6.98304 6.55088 2239615 20.93029 19.60044 17 29203 15.37245 13.76483 12 40964 11 25778 10.27355 942691 8.633798.05518 7 002666.56598 2293770 21.39541 20.00043 17.58849 15.59281 13.92999 12.53181 11 34980 10.34280 9.47901 8.73315818499707988 6,57911 23.46833 21 84918 20.38977 1787355 15 80268 14.08404 1264656 11.43500 2040624952618 8.15850 8111597.53498 6:59053 23.98856 22.29188 2076579 18 14765. 16.00256 14.23023 1275379 11.513891046444 956943 8.80054 813535 74823 5.60046 24 49859 22:12379 21.13184 184112016-19290 14 36814 12.85401 1158693 10:51784 9.50857 8.829328156567.03985609103 24.99862 23.14516 21.48722 18,56461 16.37419 14.49825 1294767 11 55457 10.566829.54416 8.85524 217550 7.07005661651 25 48884 23.55625 21.83225 18.90828 16.54585 14.62099 1303521 1171719 10.61176 9.676518.87859_819241 707899662314 25.96945 23.95732 22.167.24 19:14258 16,71129 14 73578 1311702 11.77518 10:65299 9.70592 8.899638 20751 708683 6.62881 26:44064 24.4860 22.49246 19 36786 168789 14.81602 13.19317 11.828871069082 0.13265 891859822099109371 26.90259 24.73034 22.80822 19.58148 17.01704 14 94907 13:25493 11.87858 10.72552 9.75696 8.93557823303 5.6335 27351-18 25.10278 23:11471 19.79277 17.15909 15.04530 1133171 11 92461 10.752169-77905 8.95105 8.24378 709975 29 49016 26.83302 24,51871 26.72004 17.77407 15.45583 13.70952 12. 10840 10.88120 986281900791 8 28252712322 565429 31 49361 28 52312512975 21 48218 18393 15.75186 1380075 1223348 10 46168 991481 0.0165 8.30450 Eh 23 24 25 25 27 28 29 30 31 321 35 36 30 ht TABLE 1-3: Present value of an annuity due of n payments of 1: (P/AD, 1, n) 1 1 (1 + i)" PIAD = (1 + ) 1 3% 4% 2.5% 2% 15% 5% 14% 9% 8% 12% 11% 6% 7% 10% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 1.93458 1.92593 1.91743 1.90909 1.90090 1.89286 1.87719 1.86957 3 2.94156 2.92742 2.91347 2.88609 2.85941 2,83339 2.80802 2.78326 2.75911 2.73554 2.71252 2.69005 2.64556 2.62571 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 3.62432 3.57710 3.53129 3.48685 3.44371 3.40183 3.32163 3128323 5 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 4.38721 4.31213 4.23972 4.16987 4.10245 4.03735 3.91371 3.85498 6 5.71346 5.64583 5.57971 545182 5.32948 5.21236 5.10020 4.99271 4.88965 4.79079 4.69590 4.60478 4,43308 4.35216 7 6.60143 6.50813 6.41719 6.24214 6,07569 5.91732 5.76654 5.62288 5.48592 5.35526 5.23054 5.11141 4.88867 4.78448 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 6.38929 6.20637 6.03295 5.86842 5.71220 5.56376 5.28830 5.16042 9 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 6.97130 6.74664 6.53482 6.33493 6.14612 5.967645.63886 5.48732 10 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 7.51523 7.24689 6.99525 6.75902 6.53705 6.32825 5.94637 5.77158 11 9.98259 9.75206 9.53020 9.11090 8.72173 8,36009 8.02358 7.71008 7.41766 7.14457 6.88923 6,65022 6.21612 6.01877 12 10.78685 10.51421 10.25262 9.76018 9.30641 8.88687 8.49867 8.13896 7.80519 7.49506 7.20652 6.93770 6.45273 6.23371 13 11.57534 11.25776 10.95400 10.38507 9.86325 9.38384 8.94269 8.53608 8.16073 7.813697.49236 7.19437 6.66029 6.42062 14 12.34837 11.98318 11.63496 10.98565 10.39357 9.85268 9.35765 8.90378 8.48690 8.10336 7.74987 7.42355 6.84236 6.58315 15 13.10625 12.69091 12.29607 11.56312 10.89864 10.29498 9.74547 9.24424 8.78615 8.366697.98187 7.62817 7.00207 6,72448 16 13.84926 13.38138 12.93794 1211839 11.37966 10.71225 10.10791 9.55948 9.86069 8.60608 8.19087 7.81086 7142176.84737 17 14.57771 14.05500 13.56110 12.65230 11.83777 11.10590 10 44665 9.85137 9.31256 8,82371 8.37916 7.97399 7.26506 6.95423 18 15.29 187 14.71220 14.16612 13.16567 1227407 11.47726 10.76322 10. 12164 9.54363 9.02155 8.54879 8.11963 7.37286 704716 19 15.99203 15.35336 14.75351 13.65930 12,68959 11.82760 11.05909 10.37189 9.75563 9.20141 8.70162 8.24967 746742 7.12797 20 16,67846 15.97889 15,32380 14.13394 13,08532 12.15812 11.33560 10.60360 9.95011 936492 8.83929 8.365 78 7,55037 7.19823 21 17.35143 16.58916 1587747 14.59033 13.46221 12.46992 11.59401 10.81815 10.12855 9.51355 8.96333 8.46944 7.623137.25933 22 18.01121 17 18455 1641502 15.02916 13.82115 12.76408 1183553 11.01680 10 29224 9.64869907507 8.56200268696 731246 23 18.65806 17.76541 16.93692 15 45112 14.16300 13.04158 12.06124 11.20014 10.44243 9.771549.17574 8.64465 7.74294 7.35866 24 19.29220 18.33211 17 44361 15.85684 14.48857 13,30338 12.27219 11 37106 10.58021 9.88322 9.26643 8.71843.7.79206 7.39884 25 19.91393 18.88499 17.93554 16.24696 14.79864 13.55036 12.45933 11.52876 10.70561 9.98474 9.34814 8.78432 7.83514 7:43877 20,52346 19.42438 18.41315 16.62209 15,09394 13.78336 12:55358 11 67478 10.82258 10.07704 9.42174 884314 787293745415 27 21.12104 19.95061 1887684 16.98277 15,37519 14.00317 12.82578 11.80998 10.92897 10.16095 9.48806 8.895567.96508 7.49056 28 21.7069020. 46401 19 32703 17,32959 15,61303 14.21063 12.986711123516 11 02658 10.23722 9.54780 8.94255 793515 751353 22:28127 20.96189 19.75411 17.66306. 15.89813 14.40616 1313711 12.05108 11 11613 10.306579.60152 8.98442796056 7:53351 30 22.84438 21.45355 20:18845 17 98371 16.1410714 59072 13.27767 12.15841 11.19828 10.36951 9.650119.02181.798304 7.55088 1 23,39646 21.93029 20.60044 18:29203 16,37245 14.76483 13 41904 14 25778 11 2736 12.42691 9:695965518 B00756 756598 62 23.93770 22.39541 21 00043 18 58849 16,59281 14.92909 13.53181 12.34980 11.34280 10.47901 9.73315908139801988. 7.57211 33 24.46833 2084 918 21.38877 1887355 16,80268 15.08404 13.54656 12 48500 12.40624 10:32628 9.768539.11152 R 87.59753 34 21.98856 29, 20188 2178579 19:14765 17.00255. 15.2023 13.7537512.51889 11.45444 1056943 98014 9:1358823200045 35 25 4985923.72379 22:13184 19:41120 17. 19290 15,36814 13.85401 12.58693 11.51784 10.60857 9.82932 9.1560805985761910 25.09862 24 14516 2148722 19,60161 1737419 1549825 119425 126457 11 56 175 70 71 ar 26.48884 24556252283225 19.08.29 17.54585 15.62099 14.03521 1271719 11361176 10.67631 9878589.19241 80 762314 38 26.96945 24 95732 23.1672420 14258 1771129 15.79578 1411702 12735181163299 10.7059 89963: 9. 20151 8.08583 2.62881 39 2744054 25.860 2349720 36785 17.868 15.84502 14.1 132 133299189922801175 40 27.90256 25.730 1 23 80822 2058148 18.01784 15.94307 11 25493 11.8788 11.725510 75695567 9.23.303 80997638 30.07996 27 50385 25 25427 2151884 18 662 16:18:18 119 707 108 109 987 927642 812047705244 50 3203208 29.071372650155 27 34147 19.10872 16,90757 14 180122161 2182 TO 302 16.03524 9.30168121237559 (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Calculate the right-of-use asset. (Round the intermediate and final answer to the nearest whole dollar amount.) Right-of-use asset 1-b. Record the initial journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet