Calculating Lessor Payment-Guaranteed Residual Value Quest Inc. is negotiating an agreement to lease equipment to a lessee for 8 years. The equipment has a useful life of 10 years. The fair value of the equipment is $28,000 and of return of 8% on the lease contract. The lessee guarantees a residual value of $7,000 at the end of the 8-year lease term. If the first annual payment is required at the end of the commencement of the lease, what fixed lease payment should Quest Inc. charge in order to earn its expected rate of return on the contract? Note: Enter the answer in dollars and cents, rounded to the nearest penny. Note: Do not use a negative sign with your answer.

Farm Ltd leases some parcels of land from their owner for a period of 10 years at a time. The lease agreement can be cancelled, but a significant penalty will be incurred by Farm Ltd. The lease payments required include a payment up-front of $300 000, followed by another 9 payments of equal value at the end of every year up to the end of the ninth year. The implicit rate in the lease is 10%. PV of 9 payments at 10% is 5.7590. The first lease payment commenced on 1.7.21Required:(a) Calculate the present value of the lease payments at the inception of the lease.(b) Prepare journal entries for the years 30.06.21 and 30.6.22.(c) What is the amount of the lease liability at 30.06.23

On 1 January 20X2 Grocers R Us entered into a lease to rent a mid-sized tractor trailer from TT Inc. with the following terms: • The company will rent a tractor-trailer beginning 1 April 20X2 for a 4-year period. The fair value of the trailer is $298,000 and has a useful life of 8 years. The expected residual value is $95,000. • Lease payments are due at the beginning of the year; • The asset reverts to the lessor at the end of the lease term. The lessee does not have any residual value guarantees. • TT's incremental borrowing rate is 7.4%, the rate implicit in the lease is 8.4% (which is known to the lessee). (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the lease payment. Lease payment 2. Prepare the journal entries for the 20X2, 20X3, and 20X4 fiscal years. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet…

A lease agreement that qualifies as a finance lease calls for annual lease payments of $40,000 over a eight-year lease term (also the asset's useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 4%. Required: a. Complete the amortization schedule for the first two payments. b. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required A Required B Complete the amortization schedule for the first two payments. Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar. Date January 1, Year 1 January 1, Year 1 January 1, Year 2 $ Lease Payment 40,000 $ Effective…