E 1510 Lessor calculation of annual lease payments; lessee calculation of asset and liability LO152 [This is a variation of E 159 modified to assume lease payments are at the end of each period.] Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end of each year. The lessee is aware of the lessors implicit rate of return. Situation 1 2 3 Lease term (years) 10 20 4 Lessors