Wk 4 - Apply: Revenue Recognition an... i Saved Help Save & Exit Submit 11 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $18,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 9.1 points 1 5 5 10% Situation 2 3 5 5 6 10% 10% 0 4 5 8 10% $ 7,200 Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? $ 3,600 $ 3,600 $ 7,200 4 none n/a n/a $ 8,600 5 $ 2,600 no 3 $ 4,600 yes no Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 A. The lessor's 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's 4. Total lease payments 5. Right-of-use asset 6. Lease liability