Each of the four independent situations below describes a capital lease in which annual lease...
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Accounting
Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. (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 1 2 3 4 Lease term (years) 5 8 6 9 Lessors rate of return 10 % 11 % 9 % 12 % Fair value of leased asset $ 65,000 $ 365,000 $ 90,000 $ 480,000 Lessors cost of leased asset $ 65,000 $ 365,000 $ 60,000 $ 480,000 Residual value: Guaranteed by lessee 0 $ 65,000 0 $ 45,000 Unguaranteed 0 0 $ 22,000 $ 30,000 Determine the annual lease payments for each situation: Situation 1,2,3,4
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