On January 1, 2018, National Insulation Corporation (NIC) leased equipment from
ID: 2338645 • Letter: O
Question
On January 1, 2018, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC. Portions of the United Leasing's lease amortization schedule appear below: (FV of S1. PY of St. EVA of St, PVA of S1. EVAD of S and PVAD of S7 (Use appropriate factorls) from the tables provided) 10 an. 1 Payeanta Interest 2018 12.000 163,00 010300202 12,000 7,125 143,042 5, 563 ,855 7-722 2023 22,83319,8013 27,.41s Required: 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar) 3. What is the effective anmual interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar) S. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar) 6. What is Unibed's net investment at the beginning of the lease (after the first payment? (Round your answers to nearest whole dollar) 7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar) 8. What amount would NIC recoed as a right-ofuse asset at the beginning of the lease? (Round your answers to nearest whole dollat) Prev 's at 30111 Next> 3 4Explanation / Answer
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