Each of the four independent situations below describes a
sales-type lease in which annual lease payments of $17,000 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.)
Situation | |||||||||||||
1 | 2 | 3 | 4 | ||||||||||
Lease term (years) | 2 | 2 | 2 | 2 | |||||||||
Asset’s useful life (years) | 2 | 3 | 3 | 5 | |||||||||
Lessor’s implicit rate (known by lessee) | 13 | % | 13 | % | 13 | % | 13 | % | |||||
Residual value: | |||||||||||||
Guaranteed by lessee | 0 | $ | 6,800 | $ | 3,400 | 0 | |||||||
Unguaranteed | 0 | 0 | $ | 3,400 | $ | 6,800 | |||||||
Purchase option: | |||||||||||||
After (years) | none | 1 | 2 | 3 | |||||||||
Exercise price | n/a | $ | 8,400 | $ | 2,400 | $ | 4,400 | ||||||
Reasonably certain? | n/a | no | no | yes | |||||||||
Determine the following amounts at the beginning of the lease:
(Round your final answers to nearest whole
dollar.)
|
Each of the four independent situations below describes a sales-type lease in which annual lease payments...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 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.) Situation 1 2 3 4 Lease term (years) 2 2 2 2 Asset’s useful life (years) 2 3 3 5...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 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.) 0 Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual values Guaranteed by lessee Unguaranteed...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $14,000 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.) Situation 1 2 3 4 Lease term (years) 3 3 3 3 Asset’s useful life (years) 3 4 4 6...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $13,500 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 1 2 3 4 Lease term (years) 5 5 5 5 Asset’s useful life (years) 5 6 6 8...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,000 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 5 5 9% Situation 2 5 6 9% 3 5 6 9% 4. 5 8 98 Lease term (years)...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $16,000 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.) Situation Uw 5 118 11% Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value:...
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $11,000 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.) situation 3 1 2 4 Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value...
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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $11,500 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) Please do your calculations carefully. 4 4 4 12% Situation 2 3 4 5 5 12% 12% 4 7 12% $...
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