Chapter%2015%20-%20In-Class%20Exercises%20-%20Solution%20#2

Chapter%2015%20-%20In-Class%20Exercises%20-%20Solution%20#2...

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Unformatted text preview: In‐Class Exercises Exercise #2 PV of lease payments (fv=2,000,000,pmt=1,503,084.49, n=5, i=5%, annuity due) Payment Amount 1,503,084.49 1,503,084.49 1,503,084.49 1,503,084.49 1,503,084.49 2,000,000.00 Interest Revenue Reduction in Receivable 1,503,084.49 1,158,238.71 1,216,150.65 1,276,958.18 1,340,806.09 1,904,761.90 Chapter 15 $8,400,000.03 Lease Pmts. Receivable 8,400,000.03 6,896,915.54 5,738,676.82 4,522,526.18 3,245,568.00 1,904,761.90 0.00 Date 1/1/2009 1/1/2009 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 Description Payment Payment Payment Payment Payment Residual value 344,845.78 286,933.84 226,126.31 162,278.40 95,238.10 (a) 1/1/2009 Equipment Purchased for Lease Cash (b) 1/1/09 Lease Payments Receivable Equipment Purchased for Lease Cash Lease Payments Receivable Executory Costs (c) 12/31/09 Cash Lease Payments Receivable Deferred Executory Costs Interest Revenue (d) 12/31/2013 Equipment Lease Payments Receivable Interest Revenue 8,400,000.03 8,400,000.03 8,400,000.03 8,400,000.03 1,553,084.49 1,503,084.49 50,000.00 1,553,084.49 1,158,238.71 50,000.00 344,845.78 2,000,000.00 1,904,761.90 95,238.10 ACCT 4050 Page 3 of 4 Chapter 15 ‐ In‐Class Exercises ...
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