Each of the Two Independent Situations Below Describes a Finance

question 152

Essay

Each of the two independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit interest rate.

Required: For each situation determine the amount recorded as a liability by the lessee at the beginning of the lease. Round your answers to the nearest whole dollar amounts.

---

Definitions:

Auscultating

The act of listening to the internal sounds of the body, typically with a stethoscope, for medical diagnosis.

Pyrogens

Substances that cause fever after being introduced or released into the body.

Femoral

Pertaining to the artery that lies adjacent to the femur.

Radial

Referring to the radial artery or pulse taken in the radial artery.