- Each Of The Four Independent Situations Below Describes A Sales Type Lease In Which Annual Lease Payments On Are Payable 1 (421.57 KiB) Viewed 33 times
Each of the four independent situations below describes a sales-type lease in which annual lease payments on 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, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Situation 7 98 7 116 8 105 8 128 Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee 0 0 $50,000 0 $8,000 $8,000 $50,000 $60,000 Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers to the nearest whole dollar amount.) Situation A The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable B