Each of the four independent situations below describes a sales-type lease in which annual lease payments of $125,000 are payable at the beginning of each year. Each is a finance lease for the lessee.

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)

	Situation
	1	2	3	4
Lease term (years)	6	6	7	7
Lessor's and lessee's interest rate	12%	10%	10%	11%
Residual value:
Estimated fair value	$ 0	$ 55,000	$ 8,500	$ 55,000
Guaranteed by lessee	$ 0	$ 0	$ 8,500	$ 65,000

Determine the following amounts at the beginning of the lease.

Note: Round your intermediate and final answers to the nearest whole dollar amount.

Lessor's 1- Total Gross Payment 2- Gross Investment in Lease 3- Net Investment in Lease

Leese's 1- Total lease payment 2- Right-of-Use Asset 3- Lease Liability