Each of the four independent situations below describes a sales-type lease in which annual lease payments of $15,500 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)		3			3			3			3
Assets useful life (years)		3			4			4			6
Lessors implicit rate (known by lessee)		10	%		10	%		10	%		10	%
Residual value:
Guaranteed by lessee		0		$	6,200		$	3,100			0
Unguaranteed		0			0		$	3,100		$	6,200
Purchase option:
After (years)		none			2			3			3
Exercise price		n/a		$	8,100		$	2,100		$	4,100
Reasonably certain?		n/a			no			no			yes

Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)

a. Lessor's Situation 1 2 3 4

1. total lease payments

2. gross investment in the lease

3. Net investment in the lease

b. the lessee's situation 1 2 3 4

4 total lease payments

5. right-of-use asset

6 lease liability