consider $127500 as lease payment

determinace payable VILU Each of the four independent situations below describes a sales-type lease in which annual lease payments at the beginning of each year . Each is a finance lease for the lessee. (FV of $PV of $1. FVA of $1. PVA of $. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) 4 1 6 12% Situation 2 3 6 7 14% 10% 7 11% Lease tern (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee 0 0 $55,000 $8,500 $55,000 0 $8,588 $65,000 Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount. ) Situation 1 2. 3 4 A The lessor's 1. Total lease payments 2. Gross investment in the lease ($ 750,000 $ 75,000875,00 $ 875,00 750,000 805,000 883,500 940,000 575,597 579,192 673,770 685,125 3. Net investment in the lease B The lessee's 4. Total lease payments 875,000 15. Right-of-use asset 16. Lease liability 750,000 750,000 575,507 534,135 575,597 554,135