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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $13,000 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, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1 4 Situation 2 3 4 4 5 5 10% 10% 4 4 7 10% 4 10% 0 $5,200 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 Reasonably certain? $ 2,600 $2,600 0 $5,200 0 0 none n/a 3 $7,600 no 4 $1,600 no 3 $3,600 yes n/a Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 52,000 52,000 45,329 57,200 48,881 57,200 48,881 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 52,000 45,329 52,000 45,329 45,329 52,000 45,329 45,329 45,329 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $13,000 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, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1 4 Situation 2 3 4 4 5 5 10% 10% 4 4 7 10% 4 10% 0 $5,200 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 Reasonably certain? $ 2,600 $2,600 0 $5,200 0 0 none n/a 3 $7,600 no 4 $1,600 no 3 $3,600 yes n/a Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 52,000 52,000 45,329 57,200 48,881 57,200 48,881 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 52,000 45,329 52,000 45,329 45,329 52,000 45,329 45,329 45,329

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