Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,500 are payable at the beginning of each year. Each is a finance lease for the lessee. (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) 3  3  3  3 Asset's useful life (years) 3  4  4  6 Lessor's implicit rate (known by lessee) 10% 10% 10% 10%

Residual value:            

Guaranteed by lessee 0 $6,200 $3,100  0 Unguaranteed 0  0 $3,100 $6,200 

Purchase option:   

After (years) none  2  3  3 Exercise price n/a $8,100 $2,100 $4,100 Reasonably certain? n/a  no  no  yes

Determine the following amounts at the beginning of the lease (Round your final answers to nearest whole dollar.)

 6.  Lease liability. 

A. The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Lease payments 5. Right-of-use asset