Each of the four independent situations below describes a sales-type lease in which annual lease payments of $120,000 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 9 11% Situation 2 3 9 10 4 10 12% 10% 12% Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee 0 0 $54,000 0 $8,400 $8,400 $54,000 $64,000 Determine the following amounts at the beginning of the lease: (Round your intermediate and final answer to the nearest whole dollar amount.) * Answer is complete but not entirely correct. Situation 1 2 3 4 A The lessor's 1. Total lease payments $ 1,080,000 $ 1,200,000 $ 1,080,000 1,080,000 $ 1,200,000 1,264,000 1,134,000 1,208,400 2. Gross investment in the lease 3. Net investment in the lease The lessee's 737,534 713,828 X 762,095 779,996 B 4. Total lease payments 5. Right-of-use asset 6. Lease liability 1,080,000 737,534 737,534 1,080,000 713,828 X 713,828 X 1,200,000 1,200,000 X 759,390 779,996 > 759,390 779.996 X