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Finance Lease, Lessee, Lessor, Unguaranteed Residual Value. Sun Bank recently leased machinery to Claude Company. The 8-year lease contract requires rental payments of $100,000 due on January 1 of each year, The lease is classified as a finance lease for the lessee and a sales-type lease for the lessor. Claude knows Sun Bank's 6% implicit rate. There is a $30,000 residual value. Compute the net investment in the lease for Sun Bank and the lease liability and right-of-use asset for the Claude Company assuming that the residual value is not guaranteed by the lessee or by a third party.
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- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning