Raven Company leases its 20,000 square foot office building from Ivan Company. The 20-year lease agreement was entered i

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Raven Company leases its 20,000 square foot office building from
Ivan Company. The 20-year lease agreement was entered into on July
1st, 2020. At that time, the fair value of the building was
$20,500,000. The lease agreement calls for payments to be made on
July 1st each year from 2020 – 2039 with a guaranteed residual
value of $5,500,000. On July 1, 2020, the building’s expected
useful life was 30 years and the expected residual value on June
30, 2040 was $5,000,000. The lease included a 10% 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) • Presuming Ivan company priced the lease to ensure
the present value of the receipts from the lease are equal to the
fair value of the asset, use Excel time value of money functions to
determine the lease payment in cell B11. • Use Excel time value of
money functions to determine the Present Value of the minimum lease
payments in cell B12. • State the type of lease in cell B13. • Use
Excel formulas or functions to complete the amortization table
located in cells D2:H25. (you may have empty lines)