ach 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

$1234$

Lease term $($years$)5869$

Lessor's rate of return $8\%9\%7\%10\%$

Fair value of lease asset $ $63,000$ $ $363,000$ $ $88,000$ $ $478,000$

Lessor's cost of lease asset $ $63,000$ $ $363,000$ $ $58,000$ $ $478,000$

Residual value:

Estimated fair value $0$ $ $63,000$ $ $20,000$ $ $32,000$

Guaranteed fair value $00$ $ $20,000$ $ $37,000$