Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 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 PVÁD of $1) (Use appropriate factor(s) from the tables provided.) Situation 3 4. 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 2 3 9% 5 9% 9% 9% $ 3,400 $ 3,400 $ 6,800 $ 6,800 none 1. 2 n/a n/a $ 8,400 $ 2,400 $ 4,400 Reasonably certain? no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 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 PVÁD of $1) (Use appropriate factor(s) from the tables provided.) Situation 3 4. 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 2 3 9% 5 9% 9% 9% $ 3,400 $ 3,400 $ 6,800 $ 6,800 none 1. 2 n/a n/a $ 8,400 $ 2,400 $ 4,400 Reasonably certain? no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)
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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Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)
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