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Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.)

Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 9E: Lessor Accounting with Guaranteed Residual Value Use the information for Edom Company in E20-8,...
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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $130,000 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, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Situation 2 4 Lease term ( years) Lessor's and lessen's interest rate 8 10% 11% Residual value: Estimated fair value Guaranteed by lessee $56,000 $8,600 $日,600 $56,000 $66,000 Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Situation A The lessor's: 1. Total lease payments $ 910,000 $ 910,000 $ 1,040,000 1,040.000 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 910,000 966,000 1,048,600 1,162,000 730,974 724,921 O 792,916 771.224 B 4. Total lease payments 910,000 910,000 1,040,000 1,106,000 5. Right-of-use asset 6. Lease liability 730,974 696,184 788,600 771,225 730,974 696,184 788,600 771.225
Transcribed Image Text:Each of the four independent situations below describes a sales-type lease in which annual lease payments of $130,000 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, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Situation 2 4 Lease term ( years) Lessor's and lessen's interest rate 8 10% 11% Residual value: Estimated fair value Guaranteed by lessee $56,000 $8,600 $日,600 $56,000 $66,000 Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Situation A The lessor's: 1. Total lease payments $ 910,000 $ 910,000 $ 1,040,000 1,040.000 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 910,000 966,000 1,048,600 1,162,000 730,974 724,921 O 792,916 771.224 B 4. Total lease payments 910,000 910,000 1,040,000 1,106,000 5. Right-of-use asset 6. Lease liability 730,974 696,184 788,600 771,225 730,974 696,184 788,600 771.225
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