What is the Present value factor that will be used to discount the Residual value to the present?

The lease payments represent an Annuity. What type of Annuity is this contract (Ordinary Annuity or Annuity Due)?

What is the Annuity Factor that should be used to determine the Present Value of the equal annual lease payments as described?

State the mathematical sentence you must use to solve for the annual lease payments

What is the Present Value of the Annuity?

Solve for the equal annual lease payments and place the answer here.

What kind of lease is this from the lessees point of view (Finance or Operating)?

What number of those above will you use for the first entry to record the lease on the balance sheet?

Debit RoU Asset X

Credit Lease Obligation X

Calculate the Annual Lease Payment under Two Scenarios Contact # 1 Contract # 2 Fair value of the asset 100,000 100,000 Lease Term 8 years 6 years Residual Value at the end of 20,000 40,000 the Term Lessor implied Rate 6% 8% Lessor demands on timing of At the end of each annual lease At the beginning of each lease payments period in equal amounts period in equal amounts Obtain the Present Value and Annuity Factors Requested below from the tables at the end of Chapter 6 of your Kleso, et.al. 17 edition textbook. What is the Present value factor that will be used to discount the Residual value to the present? The lease payments represent an Annuity. What type of Annuity is this contract (Ordinary Annuity or Annuity Due)? What is the Annuity Factor that should be used to determine the Present Value of the equal annual lease payments as described? State the mathematical sentence you must use to solve for the annual lease payments What is the Present Value of the Annuity? Solve for the equal annual lease payments and place the answer here. What kind of lease is this from the lessee's point of view (Finance or Operating)? What number of those above will you use for the first entry to record the lease on the balance sheet? Debit Rol Asset Credit Lease Obligation X g and the Time Value of Money TABLE 6.5 Present Value of an Annuity Due of 1 1 PVF-AD-1+ 1 In) Periods 496 1 2 3 4 5 2% 1.00000 1.98039 2.94156 3.88388 4.80773 24% 1.00000 1.97561 2.92742 3.85602 4.76197 3% 1.00000 1.97087 2.91347 3.82861 4.71710 1.00000 1.96154 2.88609 3.77509 4.62990 5% 1.00000 1.95238 2.85941 3.72325 4.54595 896 1.00000 1.92593 2.78326 3.57710 3.875 4.31213 6 7 8 9 10 52123 5917 5.71346 6.60143 7.47199 8.32548 9.16224 5.64583 6.50813 7.34939 8.17014 8.97087 5.57971 6.41719 7.23028 8.01969 8.78611 5.45182 6.24214 7.00205 7.73274 8.43533 5.32948 6.07569 6.78637 7.46321 8.10782 4.99271 5.62288 6.20037 6.74664 7.24689 7.2007 8.3000 11 12 13 14 15 9.98259 10.78685 11.57534 12.34837 13.10625 9.75206 10.51421 11.25776 11.98319 12.69091 9.53020 10 25262 10.95400 11.63496 12.29607 9.11090 9.76048 10.38507 10.98565 11.56312 8.72173 9.30641 9.86325 10.39357 10.89864 7.71008 8.13898 8.53608 8.90378 9.24424 1029491 16 17 18 19 20 13.84926 14.57771 15.29187 15.99203 16.67846 13.38138 14.05500 14.71220 15.35336 15.97889 12.93794 13.56110 14.16612 14.75351 15.32380 12.11839 12.65230 13.16567 13.65930 14.13394 11.37966 11.83777 12.27407 12.68959 13.08532 10.71225 11.10540 1147726 9.55948 9.85137 10.12164 10.37189 10.60360 12.15812 21 22 23 24 25 17.35143 18.01121 18.65805 19.29220 19.91393 16.58916 17.18455 17.76541 18.33211 18.88499 15.87747 16.41502 16.93692 17.44361 17.93554 14.59033 15.02916 15.45112 15.85684 16 24696 13.46221 13.82115 14.16300 14.48857 14.79884 12.46992 12.76408 13.04158 13.30338 13.55036 10.81815 11.01680 11.20074 11.37106. 11.52876 26 27 28 29 30 20.52346 21.12104 21.70600 22.28127 22 84438 19.42438 19.95061 20.46401 20.96489 21.45356 18.41315 18.87684 19.32703 19.76411 20.18845 16.62208 16.98277 17.32959 17.66306 17.98371 15.09394 15.37519 15.64303 15.89813 16.14107 13.78336 14.00317 14.21053 14.40616 14.59072 11.67478 11.80998 11.93518 12.05108 12.15841 31 32 33 34 35 23.39646 23.93770 2446833 24.98856 25.49859 21.93029 22.39541 22.84918 23 29188 23.72379 20.60044 21.00043 21.38877 21.76679 22.13184 18.29203 18.58849 18.87355 19.14785 19.41120 16.37245 16.59281 16.80268 17.00255 17.19290 14.78480 14.92909 15.08404 15.23023 15.36814 12.25778 12.34980 12.43500 12.51389 12.58894 38 37 38 39 40 25.99862 26.48884 26.96045 27.44084 27.90259 24.14516 24.56625 24.95732 25.34880 25.73034 22.48722 22.83225 23.16724 23.49246 23.80822 19.68461 19.90828 20.14258 20.36786 20.58448 17.37419 17.54685 17.71129 17.86789 18.01704 15.49825 15.62099 15.73678 15.84604 15.94907 12.65451 12.7171 12.7751 12.8288 12.8785 View Zoom Share Search Present Value of an ordinary Ann TABLE 64 Present Value of an ordinary Annuity of 1 Periods 40 9 91743 1.75911 2.53139 3.23972 3.8896 10% .90909 1.73554 2.48685 3.16986 3.79079 11% 90090 1.71252 2.44371 3.10245 3.69690 12% 89286 1.69005 2.40183 3.03735 3.80478 15% 38957 1.62571 2 28323 2 85498 3.35216 1 2 301 4 5 32 5.03295 5.53482 5.99525 6.41766 4.35526 4.80842 5.33493 5.75902 6.14457 4 23054 4.71220 5.14612 5.53705 5.88923 4.58376 4.96764 532825 5.65022 3.78448 4.16042 4.48732 4.77158 5.01877 7 8 9 10 6.60519 7.16073 7.48090 7.78615 8.00069 6.49506 6.81369 7.10336 7.38669 7.60608 6.20652 6.49236 6.74987 6.98187 7.19087 5.93770 6.19437 6.42355 6.62817 6.81086 5.23371 5.42062 5.58315 5.72448 5.84737 11 12 13 14 15 8.31256 8.54363 8.75563 8.95012 9.12855 7.82371 8.02155 8.20141 8.36492 8.51356 7.37916 7.54879 7.70162 7.83929 7.96333 6.97399 7.11963 7.24967 7.36578 7.46944 5.95424 6.04716 6.12797 6.19823 6.25933 16 17 18 19 20 9.29224 9.44243 9.58021 9.70661 9.82258 8.64869 8.77154 8.88322 8.98474 9.07704 8.07507 8.17574 8.26643 8.34814 8.42174 7.56200 7.64465 7.71843 7.78432 7.84314 6.31246 6.35866 6.39884 6.43377 6.46415 21 22 23 24 25 9.92897 10.02658 10.11613 10.19828 1027365 9.16095 9.23722 9.30667 9.36961 9.42691 8.48806 8.54780 8.60162 8.65011 8.69379 7.89566 7.94256 7.98442 8.02181 8.05518 6.49056 6.51353 6.53351 6.55088 6.56598 26 27 28 29 30 10.34280 10.40624 10.46444 10.51784 10.56682 9.47901 9.52638 9.56943 9.60858 9.64416 8.73315 8.76860 8.80054 8.82932 8.85524 8.08499 8.11159 8.13535 8.15656 8.17550 6.57911 6.59053 6.60046 6.60910 6.61661 31 32 33 34 35 10.61176 10.66299 10.69082 10.72552 10.75736 9.67651 9.70592 9.73265 9.75697 9.77905 8.87859 8.89963 8.91859 8.93567 8.95105 8.19241 8.20751 8.22099 8.23303 8.24378 6.62314 6.62882 6.63375 6.63805 6.64178 36 37 38 39 40 VION Future Value of an Ordinary Annuity of 1 (n) Periods 10% 1.00000 2.10000 3.31000 4.64100 6.10510 9% 1.00000 2.09000 3.27810 4.57313 5.98471 11% 1.00000 2.11000 3.34210 4.70973 6.22780 2122 12% 1.00000 2.12000 3.37440 4.77933 6.35285 15% 1.00000 2.15000 3.47250 4.99338 6.74238 1 2 3 4 . 2.1 7.52334 9.20044 11.02847 13.02104 15. 19293 7.71561 9.48717 11.43589 13.57948 15.93743 7.91286 9.78327 11.85943 14.16397 16.72201 8.11519 10.08901 12.29969 14.77566 17.54874 8.75374 11.06680 13.72682 16.78584 20.30372 6 7 8 9 10 17.56029 20.14072 22.95339 26.01919 29.36092 18.53117 21.38426 24.52271 27.97498 31.77248 19.56143 22.71319 26.21164 30.09492 34.40536 20.65458 24.13313 28.02911 32.39260 37.27972 24.34928 29.00167 34.35192 40.50471 47.58041 11 12 13 14 15 33.00340 36.97371 41.30134 46.01846 51.16012 35.94973 40.54470 45.59917 51.15909 57.27500 39.18995 44.50084 50.39593 56.93949 64.20283 42.75328 48.88367 55.74972 63.43968 72.06244 55.71747 65.07509 75.83636 88.21181 102.44358 16 17 18 19 20 198 54678 323230 56.78453 62.87334 69.53194 76.78981 84.70090 64.00250 71.40275 79.54302 88.49733 98.34706 72.26514 81.21431 91.14788 102.17415 114.41331 81.69874 92.50258 104.60289 118.15524 133.33387 118.81012 137.63164 159.27638 184.16784 212.79302 21 22 23 24 25 12.1994 35077 20883 93.32398 102.72314 112.96822 124.13536 138.30754 109.18177 121.09994 134.20994 148.63093 164.49402 127.99877 143.07864 159.81729 178.39719 199.02088 150.33393 169.37401 190.69889 214.58275 241.33268 245.71197 283.56877 327.10408 377.16969 434.74515 26 27 28 29 30 149.57522 16403699 179.80032 198.98234 215.71076 181.94343 201.13777 222.25154 245.47670 271.02437 221.91317 247.32362 275.52922 306.83744 341.58955 271.29261 304.84772 342.42945 384.52098 431.66350 500.95692 577.10046 644.66553 765.36535 881.17016 31 32 33 34 35 236.12472 258.37595 262.62978 309.06646 337.86245 299.12681 330.03949 364.04343 401.44778 442.59256 380.16441 422.98249 470.51056 523.26673 581.82607 484.46312 543.59869 609.83053 684.01020 767.09142 1014.34568 1167.49753 1343.62216 1546.16549 1779.09031 36 37 38 39 40 IMG_0413.HEIC View Zoom Share Search and the Time Value of Money TABLE 63 Future Value of an ordinary Annuity of 1 FVF-OA, (1+"-1 1 Periods 1 2 3 4 5 29 1.00000 2.02000 3.06040 4.12161 5.20404 2X96 1.00000 2.02500 3.07563 4.15252 5.25633 396 1.00000 2.03000 3.09090 4.18363 5.30914 496 1.00000 2.04000 3.12160 4 24646 5.41632 5% 1.00000 2.05000 3.15250 4.31013 5.52563 896 1.000 2.080 3.246 4.50 5.866 6 7 8 9 10 6.30812 7.43428 8.58297 9.75463 10.94972 6.38774 7.54743 8.73612 9.95452 1120338 6.46841 7.66246 8.89234 10.15911 11.46338 6.63298 7.89829 9.21423 10.58280 12.00611 6.80191 8.14201 9.54911 11.02656 12.57789 99900 11 131809 7.33 8.92 10.63 12.45 14.4 11 12 13 14 15 12.16872 13.41209 14,68033 15.97394 17.29342 12.48347 13.79555 15.14044 16.51895 17.93193 12.80780 14.19203 15.61779 17.08632 18.59891 13.48635 15.02581 16.62684 18.29191 20.02359 14.20679 15.91713 17.71298 19.59863 21.57856 149716 16.8894 18.8.2014 210750 232754 16.6 18.9 21.4 24.2 27. 16 17 18 19 20 18.63929 20.01207 21.41231 22.84056 24.29737 19.38022 20.86473 22.38635 23.94601 25.54466 20.15688 21.76159 23.41444 25.11687 26.87037 21.82453 23.69751 25.64541 27.67123 29.77808 23.65749 25.84037 28.13238 30.53900 33.06595 25.67283 282124 309956 30 33 37 41 45 33.75999 36.78569 50 55 21 22 23 24 25 25.78332 27.29898 28.84496 30.42186 32.03030 27.18327 28.86286 30.58443 32 34904 34.15776 28.67649 30.53678 32.45288 34.42647 36.45926 31.96920 34.24797 36.61789 39.08260 41.64591 35.71925 38.50521 41.43048 44.50200 47.72710 39.99278 43.39229 46.99583 50.81558 5466451 7 1 26 27 28 29 30 33.67091 35 34432 37.05121 38.79223 40.56808 36.01171 37.91200 39.85960 41.85630 43.90270 38.55304 40.70963 42.93092 45.21865 47.57542 44.31174 47.08421 49.96758 52.96629 56.08494 51.11345 54.66913 58.40258 62.32271 66.43885 59.15630 63.70677 68.52911 73.63980 79.05819 10 1 31 32 33 34 35 42.37944 44 22703 46.11157 48.03380 49.99448 46.00027 48.15028 50.35403 52.61289 54.92821 50.00268 52.50276 55.07784 57.73018 60.46208 59.32834 62.70147 66.20953 69.85791 73.65222 70.76079 75.29883 80.06377 85.06696 90.32031 84.80168 90.88978 97.34916 104.18374 111.43478 36 37 38 39 40 51.99437 54.03425 56.11494 58.23724 60.40198 57.30141 59.73395 62.22730 64.78298 67.40255 63.27594 66.17422 69.15945 72.23423 75.40126 77.59831 81.70225 85.97034 90.40915 95.02552 95.83632 101.62814 107.70955 114.09502 120.79977 119.12087 127.26812 135.90421 145.05846 154.76197 ccounting and the Time Value of Money 1 1 TABLE 4 Present Value of an Ordinary Annuity of 1 PVF-OA 7 Periods 1 2 3 4 5 29 98039 1.94156 2.88388 3.80773 4.71346 395 97087 1.91347 2.82861 3.71710 4.57971 97561 1.92742 2.85602 3.76197 4.64583 1 496 .96154 1.88809 2.77509 3.62990 4.45182 596 95238 1.85941 2.72325 3.54595 4.32948 9 1.7 2. 33 3. ATA 6 7 8 9 10 5.60143 6.47199 7.32548 8.16224 8.98259 5.50813 6.34939 7.17014 7.97097 8.75206 5.41719 6.23028 7.01969 7.78611 8.53020 5.24214 6.00205 6.73274 7.43533 8.11090 5.07569 5.78637 6.46321 7.10782 7.72173 4. 5. 5 6 6 6.71 7. 7 11 12 13 9.78685 10.57534 11.34837 12.10625 12.84926 9.51421 10.25776 10.98319 11.69091 12 38138 9.25262 9.95400 10.63496 11.29607 11.93794 8.76048 9.38507 9.98565 10.56312 11.11839 8.30641 8.86325 9.39357 9.89864 10.37966 92949 9.71225 15 16 18 19 20 13.57771 14.29187 14.99203 15.67846 16.35143 13.05500 13.71220 14.35336 14.97889 15.58916 12.56110 13.16612 13.75351 14.32380 14.87747 11.65230 12.16567 12.65930 13.13394 13.59033 10.83777 11.27407 11.68959 12.08532 12.46221 10.10580 10.4776 10.82780 11.15812 11.48982 21 22 23 24 25 17.01121 17.65805 18.29220 18.91393 19.52346 16.18455 16.76541 17.33211 17.88499 18.42438 15.41502 15.93692 16.44361 16.93554 17.41315 14.02916 14.45112 14.85684 15.24696 15.62208 12.82115 13.16300 13.48857 13.79864 14.09394 11.76408 12.04158 12.30538 12.55036 12.78336 26 27 28 29 30 20.12104 20.70690 21.28127 21.84438 22.39646 18.95061 19.46401 19.96489 20.45356 20.93029 17.8768 18.32703 18.76411 19.18845 19.60044 15.98277 16.32959 16.66306 16.98371 17.29203 14.37519 14.64303 14.89813 15.14107 15.37245 13.00317 13.21053 13.40616 13.59072 13.76483 31 32 33 22.93770 23.46833 23.98856 24.49859 24.99882 21.39541 21.84918 22.29188 22.72379 23.14516 20.00043 20.38877 20.76579 21.13184 21.48722 17.58849 17.87355 18.14765 18.41120 18.66461 35 15.59281 15.80268 16.00255 16.19290 16.37419 13.92909 14.08404 14.23023 14.36814 14.49825 36 37 38 39 40 25.48884 25.96945 28.44084 26.90259 27.35548 23.55625 23.95732 24.34860 24.73034 25.10278 21.83225 22.16724 22.49246 22.80822 23.11477 18.90628 19.14258 19.36786 19.58448 19.79277 16.54685 16.71129 16.86789 17.01704 17.15909 14.62099 14.73678 14.84802 14.94907 15.04630 Up next for you in Accounting