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. (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.)

	sit	ua	tio	n
	1	2	3	4
Lease Term (years)	6	6	7	7
Lessor's and Lesee's interest rate	12%	14%	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: (Round your intermediate and final answer to the nearest whole dollar amount.)

		si	tu	at	ion
		1	2	3	4
A.	The lessor's
	1. Total Lease Payments	$750,000	$750,000	$875,000	$875,000
	2. Gross investment in the lease	750,000		883500	940000
	3. Net investment in the lease	575597		673769	685125
B.	The lessee's
	4. Total Lease payments	750000		875000
	5. Right-of-use asset	575597			658634
	6. Lease liability	575597			658634