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)

Situation1234Lease term (years)5869Lessor's rate of return10%11%9%12%Fair value of lease asset$ 65,000$ 365,000$ 90,000$ 480,000Lessor's cost of lease asset$ 65,000$ 365,000$ 60,000$ 480,000Residual value: Estimated fair value0$ 65,000$ 22,000$ 34,000Guaranteed fair value00$ 22,000$ 39,000

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.

Answer is complete but not entirely correct.

Lease PaymentsResidual Value GuaranteePV of Lease PaymentsPV of Residual Value GuaranteeRight-of-use Asset/Lease LiabilitySituation 1 $0selected answer correct$65,000selected answer correct$0selected answer correct$65,000selected answer correctSituation 2$$0selected answer correct$336,795selected answer correct$0selected answer correct$336,795selected answer correctSituation 3 $0selected answer correct $0selected answer correct$Situation 4$78,077selected answer correct$$465,936selected answer correct$$

Exercise 15-24 (Algo) Calculation of annual lease payments; residual value [LO15-2, 156] 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. 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) 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. References Worksheet Difficulty: 1 Easy Learning Objective: 15-06 Explain the impact on lease accounting of uncertainties