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Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19,000 are payable at the beginning of each

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19,000 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
1 2 3 4
Lease term (years) 4 4 4 4
Assets useful life (years) 4 5 5 7
Lessors implicit rate (known by lessee) 12 % 12 % 12 % 12 %
Residual value:
Guaranteed by lessee 0 $ 7,600 $ 3,800 0
Unguaranteed 0 0 $ 3,800 $ 7,600
Purchase option:
After (years) none 3 4 3
Exercise price n/a $ 8,800 $ 2,800 $ 4,800
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.)

Situation
1 2 3 4
A. The lessors:
1. Total lease payments
2. Gross investment in the lease
3. Net investment in the lease
B. The lessees:
4. Total lease payments
5. Right-of-use asset
6. Lease liability

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