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The inception of a lease is 1/1/201. A third party guarantees the residual value of the asset under the lease, estimated to be $12,000
The inception of a lease is 1/1/201. A third party guarantees the residual value of the asset under the lease, estimated to be $12,000 at 1/1/20X6, the end of the lease term. Annual lease payments are $10,000 due each December 31 beginning 12/31/201. The last payment is due 12/31/20X5. Both the lessor and lessee use 10% as the interest rate. The remaining useful life of the asset was 6 years at inception. What is the net asset balance for the lessor and net liability balance for the lessee, at inception (rounded to the nearest dollar)? Net asset (lessor) Net liability (lessee) 1 $45,359 $45,359 2 $37,908 $47,908 3 $45,359 $37,908 4 $37,908 $45,359 5 $47,119 $38,339
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Lease inception date 1120X1 Lease term 1120X1 to 123120X5 Annual lease payments 10000 due on ...Get Instant Access to Expert-Tailored Solutions
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