consider lease payment as $175000

Each of the four independent situations below describes a sale-type lease in which annual lease payments on the anase payable at the beginning of each year . Each is a finance lease for the lessee. FV of $1. PV of $I. FVA of $1 PVA of $1. FVAD of $l 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 term (years ) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee O 0 $55,000 $8,580 $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 $750,000 $375,000 $ 875,000|| 750,000 805,000 883,500 940,000 575,5978579,192 673,770 685,125 3. Net investment in the lease B The lessee's 4. Total lease payments 875,00 15. Right-of-use asset 6. Lease liability 750.000 750,000 575,597554,135 575.597 554,135