Answered step by step
Verified Expert Solution
Question
1 Approved Answer
plz help! the numbers that are already filled in are correct, just finish the rest A lease agreement that qualifies as a finance lease calls
plz help! the numbers that are already filled in are correct, just finish the rest
A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 4%. (FV of $1, PV of $1, FVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: a. Determine the present value of the lease upon the lease's inception. b. Create a partial amortization through the first payment on January 1, 2017. c. If the lessee's fiscal year is the calendar year, what would be the pretax amounts related to the lease that the lessee would report in its income statement for the first year ended December 31? Required A Required B Required C Determine the present value of the lease upon the lease's inception. (Round your answers to nearest whole number and round percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PVAD of $1 Lease Payment 20,000 i- 40% PV of Lease Required ARequired BRequired C Create a partial amortization through the first payment on January 1, 2017. (Enter all amounts as positive answers to nearest whole number.) Lease Payment Effective Decrease in Outstanding Interest Date 01/01/2016 01/01/2016 01/01/2017 balance balance 20,000 20,000 0 $ 20,000 0 (20,000) Required A Required C> Required A Required B Required C If the lessee's fiscal year is the calendar year, what would be the pretax amounts related to the lease that 1 report in its income statement for the first year ended December 31? (Round your answers to nearest who Impact on pretax income related to the lease: Total expenses 0 Required B Required cStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started