The inception of a lease is 1/1/x1.A third party guarantees the residual value of the asset under lease,estimated to be $12,000 at 1/1/x6,the end of the lease term.Annual lease payments are $10,000 due each December 31 beginning 12/31/x1.The last payment is due 12/31/x5.Both the lessor and lessee use 10% as the interest rate.The remaining useful life of the asset was 6 years at inception.What is the net asset balance for the lessor and net liability balance for the lessee,at inception (rounded to the nearest dollar)?

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The Answer of The inception of a lease is 1/1/x1.A third party guarantees the residual value of the asset under lease,estimated to be $12,000 at 1/1/x6,the end of the lease term.Annual lease payments are $10,000 due each December 31 beginning 12/31/x1.The last payment is due 12/31/x5.Both the lessor and lessee use 10% as the interest rate.The remaining useful life of the asset was 6 years at inception.What is the net asset balance for the lessor and net liability balance for the lessee,at inception (rounded to the nearest dollar)?

The Inception of a Lease Is 1/1/x1