What is the total amount of lease payments for limited

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Reference no: EM131881277

Problem

On January 1, 2018. National Instruction Corporation (NIC) nearest equipment from United Leasing under a lease. Lease payments are made annually. does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC of the Unified leasing lease schedule appear below (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

1. What is the lease term in years?
2. What the asset's residual value expected at the end of the lease term?
3. What is the effective annual interest rate?
4. What is the total amount of lease payments for Limited?
5. What is the total amount of lease payments to NIC?
6. What is United's net investment at the beginning of the lease (after the first payment?
7. What is United's total effective interest revenue recorded over the term of the lease?
8. What is amount would NIC record as a right of use asset at the beginning of the lease?

Reference no: EM131881277

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