Problem 15-9 Lease concepts; sales-type leases; guaranteed and unguaranteed residual value [LO15-2, 15-6] Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,500 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 Situation 2 4 5 14% 14% 14% 14% 14% 0 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 $7,000 0 $3,500 $3,500 $7,000 none n/a n/a $ 8,500 no $2,500 no $4,500 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 2 3 4 A. The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's 4. Lease payments 5. Right-of-use asset 6. Lease payable Problem 15-9 Lease concepts; sales-type leases; guaranteed and unguaranteed residual value [LO15-2, 15-6] Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,500 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 Situation 2 4 5 14% 14% 14% 14% 14% 0 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 $7,000 0 $3,500 $3,500 $7,000 none n/a n/a $ 8,500 no $2,500 no $4,500 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 2 3 4 A. The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's 4. Lease payments 5. Right-of-use asset 6. Lease payable