Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end of each year. The lessee is aware of the lessor's implicit rate of return. (EV of $1 PV $1. FVA of $1. PVA of $1. EVAD of $i and PVAD of $1 (Use appropriate factor(s) from the tables provided.) nt ences Lease tern (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset 1 11 11% 12% $790,000 Situation 2 20 9% 10% $1,025,000 6 123 115 $200,000 Required: .. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability for each of the above situations. (Round your answers to the nearest whole dollar.) Lease Payments Right-of-use Asset Lease Payable Situation 1 Situation 2 Situation 3