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	$ 64,000	$ 364,000	$ 89,000	$ 479,000
Lessor's cost of lease asset	$ 64,000	$ 364,000	$ 59,000	$ 479,000
Residual value:
Estimated fair value	0	$ 64,000	$ 21,000	$ 33,000
Guaranteed fair value	0	0	$ 21,000	$ 38,000

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.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Situation 1} & \multicolumn{2}{|c|}{ Lease Payments } & \multicolumn{2}{|c|}{\begin{tabular}{c} Residual Value \\ Guarantee \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} PV of Lease \\ Payments \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} PV of Residual \\ Value Guarantee \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Right-of-use \\ Asset/Lease \\ Liability \end{tabular}} \\ \hline & $ & 18,355 & $ & 0 & $ & 64,000 & $ & 0 & $ & 64,000 \\ \hline Situation 2 & & & $ & 0 & & & $ & 0 & & \\ \hline Situation 3 & $ & 17,773 & $ & 0 & $ & 75,351 & $ & 0 & & \\ \hline Situation 4 & $ & 83,334 & $ & 5,000 & $ & 463,653 & & & & \\ \hline \end{tabular}