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use the appropriate factors from the tables given and fill out the chart below Each of the three independent situations below describes a finance lease
use the appropriate factors from the tables given and fill out the chart below
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) lease tere (years) Lesson's rate of return (known by lessee) Lessee's incremental borrowing rate ir value of lease asset 1 10 11% 12% $600,000 Situation 2 20 9% 10% 5900,000 4 12 101 $185,000 Required: 6. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease ability, for each of the above situations (Round your answers to the nearest whole dollar) Situation Situation 2 Station 3 Lease Payments Right of use Asseutease Payable $ 101,881 s 600,000 $ 107356 5 900.000 $ 60.90875 185.000 Step by Step Solution
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