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Please show work as I do not understand how to get the correct answers Answer is not complete. Situation The lessor's: 1. Lease payments 2.
Please show work as I do not understand how to get the correct answers
Answer is not complete. Situation The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease $ 750,000 750,000 575,598 $750,000 805,000 624,089 X The lessee's: 750,000 4. Lease payments 5. Right-of-use asset 6. Lease payable 750,000 575,598 575,598 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $125,000 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 of $1) (Use appropriate factor(s) from the tables provided.) 4 1 6 12% Situation 2 6 7 8% 10% 7 11% Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee o 0 $55,000 $8,500 $55,000 0 $8,500 $65,000 Determine the following amounts at the beginning of the lease (Round your intermediate and final answer to the nearest whole dollar amount.)Step by Step Solution
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