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		9	%		10	%		8	%		11	%
Fair value of lease asset	$	62,000		$	362,000		$	87,000		$	477,000
Lessor's cost of lease asset	$	62,000		$	362,000		$	57,000		$	477,000
Residual value:
Estimated fair value		0		$	62,000		$	19,000		$	31,000
Guaranteed fair value		0			0		$	19,000		$	36,000