Each of the four independent situations below describes a direct financing lease in which annual lease payments of $175,000 are payable at the beginning of each year. Each is a capital lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

4. value: points 15.00 Each of the four independent situations below describes a direct financing lease in which annual lease payments of $175,000 are payable at the beginning of each year Each is a capital lease for the lessee. (FV of $1, PW of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Situation Lease term (years) Lessor's and lessee's discount rate 10% 12% 11% 11% Residual value Guaranteed by lessee 0 $87,500 0 $55,000 Unguaranteed 0 $87,500 $120,000 Determine the following amounts at the inception of the lease Situation A The lessor's: 1. Minimum lease payments 2. Gross investment in the lease 3. Net investment in the lease B The lessee's 4- Minimum lease payments 5. Leased asset 6. Lease liability