Each of the three 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 rate of return.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Situation

$123$

Lease term $($years$)10204$

Lessor's rate of return $($known by lessee$)10\%8\%11\%$

Lessee's incremental borrowing rate $11\%9\%10\%$

Fair value of lease asset $$660,000$ $$1,040,000$ $$245,000$

Required:

a$.$ & 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.

Note: Round your answers to the nearest whole dollar.