Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. consider lease payment as $175000 each of the fou

consider lease payment as $175000 Each of the four independent situations below describes a...

70.2K

Verified Solution

Question

Accounting

image

consider lease payment as $175000

Each of the four independent situations below describes a sale-type lease in which annual lease payments on the anase payable at the beginning of each year . Each is a finance lease for the lessee. FV of $1. PV of $I. FVA of $1 PVA of $1. FVAD of $l and PVAD of $1 (Use appropriate factor(s ) from the tables provided.) 4 1 6 12% Situation 2 3 6 7 14% 10% 7 11% Lease term (years ) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee O 0 $55,000 $8,580 $55,000 0 $8,588 $65,000 Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.) Situation 1 2 3 4 A The lessor's 1. Total lease payments 2. Gross investment in the lease $ 750,000 $750,000 $375,000 $ 875,000|| 750,000 805,000 883,500 940,000 575,5978579,192 673,770 685,125 3. Net investment in the lease B The lessee's 4. Total lease payments 875,00 15. Right-of-use asset 6. Lease liability 750.000 750,000 575,597554,135 575.597 554,135

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students