Qu2 of 1000 Classifying Leases The flowing seperate scenarios relate to a 5-year lease pertaining to equipment with a fir walue of $25.000, Assume in all scenarios that payments are made

at the beginning of the period 1. Lae payments indude a fixed payment of $5,000 per year. 2. Lose payments include a fleed payment of $5,000 per year, plus $250 for insurance and $300 for a maintenance contract 3. Lease payments will be $5,000 in the first year and will increase by 3% (calculated on the previous year's payment for each of the following 4 years. 4. Le payment will be $5,000 in the first year and wit increase each of the following years by the increase in the CP from the preceding year. The current CP is 120 and is expected to increase to 122 at the end of the next year. 5. Leve payments will be $5,000 in the first year and will increase each of the following years by (a) the increase in the OPI from the preceding year, or (b) 3%, whichever is greater. The current CR is 120 and is expected to increase to 122 at the end of the next year. 6. Lease payments include a food payment of $8,000 per year. In addition, the losse has guaranteed the residual value of the equipment for $1,000 at the end of the lease Required For each of the sex separate scenarios outlined above, and considering cely the fer wake lesse criterion, determine how the lessee would classify the lease assuming discount rate of 7% Note: Round amures in table to the nearest whe Py of Las Papes of fair Value Lease Clification 15 22,500 Opening Lease 22500 France 22,500 21,90€ 24,000 $ 25.145 22.140 23.149 22,60 22.500 Operating 22.500 22,900 case ce Lease