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

	Situation
1 Lessee	2 Lessor
Lease term	10	years	20	years
Lessor's desired
rate of return	10	%	12	%
Lessee's incremental
borrowing rate	12	%	10	%
Fair value of 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

Required:For each situation determine the amount of the annual lease payment, as calculated by the lessor. Note: Round your answers to the nearest whole dollar amounts.