Each of the independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate.

Situation	1	2
Lease Term	10 years	20 years
Lessor's Desired
-The rate of Return	10%	12%
Lessee's incremental
-Borrowing Rate	12%	10%
Fair Value of the asset	$600,000	$400,000

For convenience, here are some table values:

Periods; interest rate	PV, ordinary annuity	PV, annuity due
10 periods, 10%	6.1446	6.7590
10 periods, 12%	5.6502	6.3283
20 periods, 10%	8.5136	9.3649
20 periods, 12%	7.4694	8.3658

For each situation, determine the amount of the annual lease payments, as calculated by the lessor:

Situation 1:

Situation 2: