3. Net investments in the lease. What is #3. $710,045 is not correct.

1 8 10% Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee Situation 2 3 8 9 12% 11% 4 9 11% 0 $53,000 $8,300 $8,300 $53,000 $63,000 Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whe dollar amount.) Situation 1 2 4 $ The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 920,000 $ 920,000 674,868 920,000 $ 1,035,000 $1,035,000 973,000 1,043,300 1,098,000 661,238 710,045 731,432 B. 1,035,000 920,000 674,868 674,868 920,000 639,832 639,832