Each of the four independent situations below describes a sales-type lease in which annual lease payments of $17,500 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.) 3 1 4 Situation 2 4 5 8% 4 4 7 8% 4 5 8% 4 8% 0 $ 7,000 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? $ 3,500 $ 3,500 $ 7,000 3 3 none n/a n/a $ 8,500 4 $ 2,500 no $ 4,500 yes no 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 $ 70,000 70,000 57,000 70,000 70.000 77,000 77,000 67,744 3. Net investment in the lease 62,599 67,744 70,000 70,000 B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 70,000 62,599 62,599 62,599 62,599 62,599 52,500 52,279 52,279) 62,599