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LEASE CALCULATION WORKSHEET  Form

LEASE CALCULATION WORKSHEET Form

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okay hi everyone let's work exercise 21-2 it's a question that asks us to determine what's the present value of the minimum lease payments so we here's the information Pat Delaney company leases an automobile with a fair value of seventeen thousand one hundred and ten dollars I'm reading that right there from John Simon motors on the following terms and you can see the terms there there's five of them the non cancelable lease term is fifty three months in length there are rentals of three hundred and eighty dollars per month - at the end of the month so it is an annuity and ordinary annuity now they even tell us the present value of this and they give us that information but I'm gonna calculate that myself now the third point there is estimated residual value after fifty three months is one thousand and ten again they give us the present value of that a Dulaney company guarantees the residual value of one thousand in one hundred o

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