Each of the four independent situations below describes a sales-type lease in which annual lease payments of $190,000 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)	7	7	8	8
Lessor's and lessee's interest rate	10%	12%	11%	11%
Residual value:
Estimated fair value	0	$68,000	$9,800	$68,000
Guaranteed by lessee	0	0	$9,800	$78,000

Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.) X Answer is complete but not entirely correct. Situation 1 2 3 4 A The lessor's: 1. Total lease payments $ 1,330,000 $ 1,330,000 $ 1,520,000 $ 1,520,000 1,598,000 1,330,000 1,398,000 1,529,800 2. Gross investment in the lease 3. Net investment in the lease 1,017,500 1,001,927 1,089,571 1,114,825 B The lessee's: 1,330,000 4. Total lease payments 5. Right-of-use asset 6. Lease liability 1,017,500 1,330,000 971,168 971,168 1,520,000 1,085,318 1,085,318 1,530,000 1,089,657 1,089,657 1,017,500