15-9 (Algo) Lease concepts; sales-type leases; guaranteed and unguaranteed residual value [LO15-2, 15-6] Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? Situation 1 2 3 4 4 4 4 4 4 5 5 7 12% 12% 12% 12% 0 $ 7,600 0 0 $ 3,800 $3,800 0 $ 7,600 none 3 4 3 n/a $ 8,800 $ 2,800 $ 4,800 n/a no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) A. The lessor's: Situation 1 2 3 4 1. Total lease payments $ 76,000 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability