Raven Company leases its 20,000 square foot office building from Ivan Company. The 20-year lease agreement was entered into on July 1st, 2020. At that time, the fair value of the building was $20,500,000. The lease agreement calls for payments to be made on July 1st each year from 2020 2039 with a guaranteed residual value of $5,500,000. On July 1, 2020, the buildings expected useful life was 30 years and the expected residual value on June 30, 2040 was $5,000,000. The lease included a 10% discount rate

. Use the Office Lease worksheet to: List the inputs needed to determine the lease payment and present value of minimum payments in cells A4:B10. (you may have empty lines) Presuming Ivan company priced the lease to ensure the present value of the receipts from the lease are equal to the fair value of the asset, use Excel time value of money functions to determine the lease payment in cell B11. Use Excel time value of money functions to determine the Present Value of the minimum lease payments in cell B12. State the type of lease in cell B13. Use Excel formulas or functions

A- Office Lease Effective Decrease in Outstandin Interest Balance Balance Date Payment List Payment and PV Calculations Inputs: Payment Calculation: Present Value of Min Payments