Each of the four independent situations below describes a sales-type lease in which annual lease payments of $150,000 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.)

Situation 2 Lease term (years) 7 8 Lessor's and lessee's interest rate 128 148 108 10% Residual value: Estimated fair value $60, 000 Guaranteed by lessee $9, 000 $60,000 0 $9, 000 $70, 000