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Current Attempt in Progress Sandhill Services Inc. accounts for the lease of a truck. The...

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Accounting

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Current Attempt in Progress Sandhill Services Inc. accounts for the lease of a truck. The lease includes a residual value guarantee at the end of the lease term of $ 18,400. Sandhill estimates that the likelihood that the residual value will be $ 18,400 has a 50% certainty. Sandhill feels that there is a 30% chance that the residual value will be $ 11,700 and a 20% chance that it will be $ 9,200. Calculate the probability-weighted value of the residual guarantee that needs to be included in the measurement of the lease payments liability recorded by Sandhill when the lease is signed. Probability-weighted expected value $

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