Each of the four independent situations below describes a sales-type lease in which annual lease payments of $10,500 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. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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? Situation 1 2 5 5 5 6 6 8 10% 10% 10% 106 0 $4,200 $2,100 0 $2,100 $4,200 none 4 4 n/a $7,100 $1,100 $3,100 n/a no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation A. The lessor's: 1. Total lease payments 2 Gross investment in the lease 3. Net investment in the lease B. The lessee's 4 Total lease payments 5. Right-of-use asset 6. Lease liability Each of the four independent situations below describes a sales-type lease in which annual lease payments of $10,500 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.) Situation 1 2 3 4 Lease term (years) Asset's useful life (years) 5 5 5 5 5 6 8 Lessor's implicit rate (known by lessee) 10% 10 10% 10% Residual value: Guaranteed by lessee. 0 $4,200 $2,100 0 Unguaranteed 0 $2,100 $4,200 Purchase option: After (years) none 4 4 Exercise price. Reasonably certain? n/a $7,100 $1,100 n/a no no $3,100 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) A. The lessor's: 1. Total lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Total lease payments 5. Right-of-use asset. 6. Lease liability Situation 2 3