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. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.)

Situation123Lease term (years)11215Lessor's rate of return (known by lessee)10%8%11%Lessee's incremental borrowing rate11%9%10%Fair value of lease asset$700,000$1,080,000$285,000

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 above situations.(Round your answers to nearest whole dollar.)