Some of the characteristics of an asset available for lease are provided in the accompanying table. (Click the icon to view the lease characteristics.) Lease characteristics Required a. Determine the amount of lease payment that the lessor would require to lease the asset. b. Compute the lessor's net investment in the lease at initial recognition. c. Compute the value of the lessee's ROU asset at initial recognition. d. Compute the lessee's lease liability at initial recognition. Fair value of leased asset $ 85,000 Lease term 8 years Annual Requirement a. Determine the amount of lease payment that the lessor would require to lease the asset. Begin by calculating the present value of the guaranteed residual value and the value to be recovered by t Enter your final answers as positive amounts rounded to the nearest whole dollar.) Payment frequency Payment timing Guaranteed residual value Expected payout under guaranteed residual Interest rate implicit in the lease (not readily determinable by the lessee) Lessee's incremental borrowing rate Beginning of year $ 19,000 $ 11,400 11% Present value of guaranteed residual value Value to be recovered by annual lease payments 12% Determine the amount of lease payment that the lessor would require to lease the asset. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Annual lease payment required by the lessor Requirement b. Compute the lessor's net investment in the lease at initial recognition. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Lessor's net investment in the lease Requirement c. Compute the value of the lessee's ROU asset at initial recognition. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Value of the lessee's ROU asset Requirement d. Compute the lessee's lease liability at initial recognition. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Lessee's lease liability Some of the characteristics of an asset available for lease are provided in the accompanying table. (Click the icon to view the lease characteristics.) Lease characteristics Required a. Determine the amount of lease payment that the lessor would require to lease the asset. b. Compute the lessor's net investment in the lease at initial recognition. c. Compute the value of the lessee's ROU asset at initial recognition. d. Compute the lessee's lease liability at initial recognition. Fair value of leased asset $ 85,000 Lease term 8 years Annual Requirement a. Determine the amount of lease payment that the lessor would require to lease the asset. Begin by calculating the present value of the guaranteed residual value and the value to be recovered by t Enter your final answers as positive amounts rounded to the nearest whole dollar.) Payment frequency Payment timing Guaranteed residual value Expected payout under guaranteed residual Interest rate implicit in the lease (not readily determinable by the lessee) Lessee's incremental borrowing rate Beginning of year $ 19,000 $ 11,400 11% Present value of guaranteed residual value Value to be recovered by annual lease payments 12% Determine the amount of lease payment that the lessor would require to lease the asset. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Annual lease payment required by the lessor Requirement b. Compute the lessor's net investment in the lease at initial recognition. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Lessor's net investment in the lease Requirement c. Compute the value of the lessee's ROU asset at initial recognition. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Value of the lessee's ROU asset Requirement d. Compute the lessee's lease liability at initial recognition. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest whole dollar.) Lessee's lease liability
