Each of the four 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 rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Lease term (years). Lessor's rate of return. Fair value of lease asset Lessor's cost of lease asset. Residual value: Estimated fair value Guaranteed fair value 1 5 10% $ 53,000 $ 53,000 0 0 2 Situation 8 118 $ 353,000 $ 353,000 $ 53,000 0 3 6 98 $ 78,000 $ 48,000 $ 10,000 $ 10,000 4 9 128 $ 468,000 $ 468,000 $ 48,000 $ 53,000

Each of the four 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 rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Situation 1 2 3 4 Lease term (years) Lessor's rate of return. 5 10% 8 11% 6 9 9% 12% Fair value of lease asset $ 67,000 $ 367,000 $ 92,000 Lessor's cost of lease asset $ 67,000 $ 367,000 $ 62,000 $ 482,000 $ 482,000 Residual value: Estimated fair value Guaranteed fair value 0 $ 67,000 $ 24,000 $ 36,000 0 0 $ 24,000 $ 41,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar amount. Lease Payments Residual Value PV of Lease Guarantee Payments PV of…

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