Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 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) 2 2 2 2 Assets useful life (years) 2 3 3 5 Lessors implicit rate (known by lessee) 9 % 9 % 9 % 9 % Residual value: Guaranteed by lessee 0 $ 6,800 $ 3,400 0 Unguaranteed 0 0 $ 3,400 $ 6,800 Purchase option: After (years) none 1 2 3 Exercise price n/a $ 8,400 $ 2,400 $ 4,400 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.)

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,000 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.) 1 2. 2 9% Situation 2 3 2 2. 3 3 9% 9% 4 2 5 9% Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? 0 0 $6,800 0 $3,400 $3,400 0 $6,800 none n/a n/a 1 $ 8,400 no 2 $2,400 no 3 $4,400 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 4 A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability