Question
Use the facts from E 17-64 and answer the following questions. Show an analysis as shown in class with detailed computations. If your answer and
Use the facts from E 17-64 and answer the following questions. Show an analysis as shown in class with detailed computations. If your answer and calculations would be exactly the same as another part of your solution, you may write: "Exact same solution as shown in solution xxx (insert reference)": 1. How did the Lessor Company arrive at a $11,923 payment amount using the initial facts of the exercise? 2. How did the Lessor Company arrive at a $11,923 payment amount using the facts in Part D of the exercise? 3. Assume the same Fair Value and interest rates but the residual value is unguaranteed. a) What payment would the Lessor expect from the Lessee? b) At what amount would the RUA and the lease liability be recorded for the Lessee? 4. Assume same Fair Value, interest rates, lease term and residual value, but there is a bargain purchase option of $6,500 available for exercise at the end of the lease term. a) What payment would the Lessor expect from the lease? b) At what amount would the RUA and the lease liability be recorded for the Lessee?
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