Each of the four independent situations below describes a sales-type lease in wh

Question

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $100,000 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.) Situation 1 2 3 4 Lease term (years) 7 7 8 8 Lessor's and lessee's interest rate 9% 11% 10% 12% Residual value: Estimated fair value 0 $50,000 $8,000 $50,000 Guaranteed by lessee 0 0 $8,000 $60,000 Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers to the nearest whole dollar amount.)  

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $100,000 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 appropriete fector(s) from the tebles provlded.) Situation Lease term (years) Lessor's and lessee's interest rate Residual value: 9% 11% 18% 12% Estimated fair value Guaranteed by lessee $58,80 $8,98e $8,800 $58,8e $60,8e0 Determine the following amounts at the beginning of the lease. (Round your Intermedlate and final answers to the nearest whole doller amount.) A The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease 5 700,000 700,000 800,000 808,000 590,574 700,000 750,000 548,592 547.137 B The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable 700,000 548,592 548,592 700,000 800,000 586,842 586,842

Explanation / Answer

the amounts of at the beginning of lease of lessor and lesse si given below in table which shows thjer calkculations as given below

Lessor lease payments situation per year lease payment no of years of lease amount add-:residual value guranteed by lessee or third party Total lease payments A B C = AxB D E=C+D 1 100000 7 700000 0 700000 2 100000 7 700000 0 700000 3 100000 8 800000 8000 808000 4 100000 8 800000 60000 860000

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