Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3) A lease agreement th

Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3) A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2016, the beginning of the lease. The interest rate is 4%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $80,000. (FV of $1. PV of $1 EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: a. Determine the price at which the lessor is 'selling the asset (present value of the lease payments) b. Create a partial amortization schedule through the second payment on January 1, 2017 c. What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December 31, 2017 ignore taxes)? Complete this question by entering your answers in the tabs below. Required a Required B Required Determine the price at which the lessor is selling the asset (present value of the lease payments). (Round your answers to nearest whole number and round percentage answer to 1 decimal place.) PV factors based on Table of Calculator function Lease Payment py of Lease Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3] A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2016, the beginning of the lease. The interest rate is 4%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $80,000. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of S1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: a. Determine the price at which the lessor is “selling the asset (present value of the lease payments). b. Create a partial amortization schedule through the second payment on January 1, 2017 c. What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December 31, 2017 [ignore taxes)? Complete this question by entering your answers in the tabs below. Required A Required B Required Create a partial amortization schedule through the second payment on January 1, 2017. (Enter all amounts as positive values. Round your answers to nearest whole number.) Date Cash Interest Received Effective Interest Decrease in Balance Outstanding Balance 01/01/2015 01/01/2017 Required A Required C > Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3] A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2016, the beginning of the lease. The interest rate is 4%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $80,000. (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.) Required: a. Determine the price at which the lessor is “selling the asset (present value of the lease payments). b. Create a partial amortization schedule through the second payment on January 1, 2017 c. What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December 31, 2017 (ignore taxes)? Complete this question by entering your answers in the tabs below. Required A Required B Required C What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December 31, 2017 (ignore taxes)? (Round your answers to nearest whole number.) Pretax impact on income related to the lease: Total pretax impact on income