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. (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.)

	Situation
		1			2			3			4
Lease term (years)		5			8			6			9
Lessor's rate of return		10	%		11	%		9	%		12	%
Fair value of lease asset	$	67,000		$	367,000		$	92,000		$	482,000
Lessor's cost of lease asset	$	67,000		$	367,000		$	62,000		$	482,000
Residual value:
Estimated fair value		0		$	67,000		$	24,000		$	36,000
Guaranteed fair value		0			0		$	24,000		$	41,000

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 above situations. (Round your PV factor answers to 5 decimal places and other answer to nearest whole dollar.)

Check my work 3 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 lessor's implicit rate of return. (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.) 20 Situation points Lease term (years) 102 1% rn eu eBook Fair al $67,000 $367,000 $92,000 $482,000 asset cost of lease asset $67,000 $367,000 $482,000 Lessor $62,000 Hint Estimated fair value 67,000 $24,000 $24,000 36,000 41,000 Print Guaranteed fair value References 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 above situations. (Round your PV factor answers to 5 decimal places and other answer to nearest whole dollar.) Right-of-use Asset/Lease Residual Value Guarantee PV of Lease Payments PV of Residual Value Guarantee Lease Payments Liability Situation 1 S S $ 0 0 0 Situation 2 S 0 0 Situation 3 0 Situation 4