Each 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 lessors 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 1, 2, 3, 4

Lease term (years) 4, 7, 5, 8

Lessor's rate of return 10%, 11%, 9%, 12%

Fair value of lease asset $ 50,000, $ 350,000, $ 75,000, $ 465,000

Lessor's cost of lease asset $ 50,000, $ 350,000, $ 45,000, $ 465,000

Residual value:

Estimated fair value $0, $ 50,000, $ 7,000, $ 45,000

Guaranteed fair value $0, $0, $ 7,000, $ 50,000

Required:

a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations.

Note: Round your answers to the nearest whole dollar amount.