On January 1, 2019, Raven Company leased copiers from Ivan Company for a 7-year period ending on December 31, 2025. At t

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On January 1, 2019, Raven Company leased copiers from Ivan
Company for a 7-year period ending on December 31, 2025. At the
time of the lease agreement, the fair value of the copiers was
$500,000. The lease requires 7 annual payments of $78,256 on
December 31st each year. The first payment was made at the
inception of the lease on January 1, 2019. The lease requires a
guaranteed residual value of $100,000. On January 1, 2019, the
expected residual value was $120,000 and the useful life of the
copiers was 12 years. The lease included a 12% discount rate.
• List the inputs needed to determine the lease payment and
present value of minimum payments in cells A4:B10. (you may have
empty lines) • Use Excel time value of money functions to determine
the Present Value of the minimum lease payments in cell B11. •
State the type of lease in cell B12. • Use Excel formulas or
functions to complete the amortization table located in cells
D2:H25. (you may have empty lines