Each of the four independent situations below describes a direct financing lease in which annual lease payments of $10,000 are payable at the beginning of each year. Each is a capital lease for the lessee. Determine the following amounts at the inception of the lease:

A. The lessor’s:

1. Minimum lease payments

2. Gross investment in the lease

3. Net investment in the lease

B. The lessee’s:

4. Minimum lease payments

5. Leased asset

6. Lease liability