15 38 slide 39 residual value guaranteed guaranteed

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Unformatted text preview: sidual value L essor's calculation of rental payments: Fair market value of asset $ 479,079 Less: PV of residual value $ 60,000 × 0.56447 = (33,868) Amount recoverd through payments $ 445,211 PV annuity due factor, n = 6, I = 10% ÷ 4.79079 Rental payments $ 92,931 PV factor of $1: n=6, i=10% PV factor of $1: n=6, i=10% L essee's calculation of PV of ML P: PV of periodic payments $ 92,931 × Plus: PV of residual value 60,000 × PV of MLP 4.79079 = $ 445,211 0.56447 = 33,868 $ 479,079 15-39 Slide 40 Residual Value Guaranteed Sales-Type Lease – January 1, 2011 San Serif Publishers, Inc. (Lessee) Leased equipment 479,079 Lease payable 479,079 CompDec Corporation (Lessor) Lease receivable Cost of goods sold Sales revenue Inventory of equipment 479,079 300,000 479,079 300,000 15-40 Slide 41 Residual Value Guaranteed First Lease Payment – January 1, 2011 San Serif Publishers, Inc. (Lessee) Lease payable 92,931 Cash 92,931 CompDec Corporation (Lessor) Cash Lease receivable 92,931 92,931 15-41 Slide 42 Residual Value Guaranteed December 31, 2015 San Serif Publishers, Inc. (Lessee) Depreciation expense 69,847 Accumulation depreciation 69,847 Interest expense Lease payable Cash CompDec Corporation (Lessor) Cash Interest revenue Lease receivable 13,407 79,524 Recorded cost of leased asset $ 479,079 Guarantted residual value (60,000) Basis for depreciation 419,079 Useful life in years ÷ 6 Annual depreciation $ 69,847 92,931 92,931 13,407 79,524 See amortization schedule 15-42 Slide 43 Residual Value Guaranteed End of Lease – December 31, 2016 Sans Serif Publishers, Inc. (Lessee) Sans Serif Publishers, Inc. (Lessee) Depreciation expense ($479,079 – 60,000) ÷ 6) Depreciation expense ($479,079 – 60,000) ÷ 6) Accumulated depreciation Accumulated depreciation Interest expense Interest expense Lease payable Lease payable Accumulated depreciation Accumulated depreciation Leased equipment Leased equipment CompDec Corporation (Lessor) CompDec Corporation (Lessor) Inventory of equipment Inventory of equipment Lease receivable Lease receivable Interest revenue Interest revenue 5,458 5,458 54,542 54,542 419,079 419,079 60,000 60,000 69,847 69,847 69,847 69,847 479,079 479,079 54,582 54,582 5,458 5,458 15-43 Slide 44 Residual Value Unguaranteed When residual value is unguaranteed, the lessee is not obligated residual unguaranteed, the to make any payments other than the periodic rental payments. the Lessee: The present value of the minimum lease payments — re...
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