# /// script
# requires-python = ">=3.12"
# dependencies = []
# [tool.uv]
# exclude-newer = "2026-08-07T00:00:00Z"
# ///
"""Reperform three fictional lessor accounting lanes.

Run from any directory with:
    uv run /absolute/path/to/linden-peak-lessor-three-lanes.py

No third-party packages are required. Classification, collectibility, rates,
residuals, fair value, and direct-cost conclusions are supplied assumptions.
"""

from __future__ import annotations


def money(amount: float) -> str:
    """Format signed US dollars with commas and parentheses."""
    return f"(${abs(amount):,.2f})" if amount < 0 else f"${amount:,.2f}"


def percent(rate: float) -> str:
    return f"{rate:.6%}"


def present_value(amount: float, rate: float, periods: int) -> float:
    return amount * (1 + rate) ** -periods


def annuity_present_value(payment: float, rate: float, periods: int) -> float:
    return payment * (1 - (1 + rate) ** -periods) / rate


def net_investment_rows(
    opening_balance: float, payment: float, yield_rate: float, periods: int
) -> list[dict[str, float]]:
    rows: list[dict[str, float]] = []
    balance = opening_balance
    for period in range(1, periods + 1):
        interest = balance * yield_rate
        ending = balance + interest - payment
        rows.append(
            {
                "period": float(period),
                "opening": balance,
                "interest": interest,
                "cash": payment,
                "ending": ending,
            }
        )
        balance = ending
    return rows


def print_schedule(title: str, rows: list[dict[str, float]]) -> None:
    print(title)
    print(" Year       Opening      Interest          Cash        Ending")
    print("-----  ------------  ------------  ------------  ------------")
    for row in rows:
        print(
            f"{int(row['period']):>5}  {money(row['opening']):>12}  "
            f"{money(row['interest']):>12}  {money(-row['cash']):>12}  "
            f"{money(row['ending']):>12}"
        )
    print()


print("LINDEN PEAK — LESSOR THREE-LANE ANALYSIS")
print("All entities, judgments, rates, residuals, and amounts are fictional.\n")

# Lane 1: supplied sales-type classification.
sales_payment = 20_000.0
sales_rate = 0.07
sales_periods = 5
sales_carrying_amount = 75_000.0
sales_fair_value = 82_003.94871895191
sales_initial_direct_costs = 1_000.0
sales_receivable = annuity_present_value(sales_payment, sales_rate, sales_periods)
sales_profit = sales_receivable - sales_carrying_amount
sales_rows = net_investment_rows(sales_receivable, sales_payment, sales_rate, sales_periods)

print("1. SUPPLIED SALES-TYPE CLASSIFICATION")
print(f"Lease receivable / initial net investment: {money(sales_receivable)}")
print(
    f"Selling profit: {money(sales_receivable)} − {money(sales_carrying_amount)} "
    f"= {money(sales_profit)}"
)
print(f"Initial direct-cost expense under supplied facts: {money(sales_initial_direct_costs)}")
print(f"Supplied fair value: {money(sales_fair_value)}\n")
print_schedule("Sales-type net-investment schedule", sales_rows)

# Lane 2: supplied direct-financing classification and two residual rights.
direct_payment = 9_500.0
direct_measurement_rate = 0.046458369707536584
direct_net_yield = 0.08257987131214095
direct_periods = 6
direct_guaranteed_residual = 13_000.0
direct_unguaranteed_residual = 7_000.0
direct_carrying_amount = 54_000.0
direct_fair_value = 62_000.0
direct_initial_direct_costs = 2_000.0

fixed_payment_pv = annuity_present_value(direct_payment, direct_measurement_rate, direct_periods)
guaranteed_residual_pv = present_value(
    direct_guaranteed_residual, direct_measurement_rate, direct_periods
)
unguaranteed_residual_pv = present_value(
    direct_unguaranteed_residual, direct_measurement_rate, direct_periods
)
direct_receivable = fixed_payment_pv + guaranteed_residual_pv
gross_net_investment = direct_receivable + unguaranteed_residual_pv
deferred_profit = (
    direct_receivable
    - (direct_carrying_amount - unguaranteed_residual_pv)
    - direct_initial_direct_costs
)
direct_initial_net_investment = gross_net_investment - deferred_profit
direct_rows = net_investment_rows(
    direct_initial_net_investment, direct_payment, direct_net_yield, direct_periods
)

print("2. SUPPLIED DIRECT-FINANCING CLASSIFICATION")
print(f"Measurement rate: {percent(direct_measurement_rate)}")
print(f"PV of fixed payments: {money(fixed_payment_pv)}")
print(f"PV of guaranteed residual: {money(guaranteed_residual_pv)}")
print(f"Lease receivable: {money(direct_receivable)}")
print(f"PV of unguaranteed residual right: {money(unguaranteed_residual_pv)}")
print(f"Gross net investment: {money(gross_net_investment)}")
print(f"Deferred selling profit: {money(deferred_profit)}")
print(f"Initial net investment: {money(direct_initial_net_investment)}")
print(f"Supplied fair value: {money(direct_fair_value)}")
print(f"Net-investment yield: {percent(direct_net_yield)}\n")
print_schedule("Direct-financing net-investment schedule", direct_rows)

# Lane 3: supplied operating classification retains the underlying asset.
operating_payment = 12_000.0
operating_periods = 4
operating_carrying_amount = 100_000.0
operating_initial_direct_costs = 2_000.0
operating_direct_cost_expense = operating_initial_direct_costs / operating_periods
operating_net_lease_income = operating_payment - operating_direct_cost_expense

print("3. SUPPLIED OPERATING CLASSIFICATION")
print(f"Underlying asset retained in PP&E: {money(operating_carrying_amount)}")
print("Initial net investment: $0.00")
print(f"Periodic lease income: {money(operating_payment)}")
print(f"Periodic initial-direct-cost expense: {money(operating_direct_cost_expense)}")
print(f"Net lease income before depreciation: {money(operating_net_lease_income)}")
print("Depreciation and impairment remain in the underlying-asset workpaper.\n")

# Numeric controls use full precision even though the display is rounded.
expected_residual = direct_guaranteed_residual + direct_unguaranteed_residual
assert abs(sales_rows[-1]["ending"]) < 1e-8
assert abs(direct_rows[-1]["ending"] - expected_residual) < 1e-8
assert abs(gross_net_investment - 64_000.0) < 1e-8
assert operating_carrying_amount == 100_000.0

print("CONTROLS")
print("Sales-type net investment settles to zero: PASS")
print(f"Direct-financing ending residual: {money(direct_rows[-1]['ending'])} — PASS")
print("Operating underlying asset remains recorded: PASS\n")

print("BOUNDARY")
print("This script does not classify a lease, establish collectibility, approve a")
print("rate, value a residual, test the ASU 2021-05 exception, determine tax or")
print("impairment, approve entries, or release disclosures.")