Each of the four independent situations below describes a sales-type lease in which annual lease payments of $10,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Situation 1 2 3 4 Lease term (years) 4 4 4 4 Asset's useful life (years) 4 5 5 7 Lessor's implicit rate (known by lessee) 118 11% 118 11% Residual value: Guaranteed by lessee Unguaranteed $ 0 $ 0 $ 4,000 $ 2,000 $ 0 $ 0 $ 2,000 $ 4,000 Purchase option: After (years) none 3 4 3 Exercise price $ 7,000 $ 1,000 Reasonably certain? no no $ 3,000 yes 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) Determine the following amounts at the beginning of the lease: Note: Round your final answers to nearest whole dollar. A. The lessor's: Situation 1 2 3 40,000 $40,000 $ 40,000 $ 33,000 1. Total lease payments $ 2. Gross investment in the lease 3. Net investment in the lease 40,000 34,437 B. The lessee's: 4. Total lease payments 5. Right-of-use asset 6. Lease liability 44,000 44,000 37,000