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. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset 1 11 11% 12% $690,000 Situation 2 20 9% 10% $1,025,000 3 3 10% 9% $230,000 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. (Round your answers to the nearest whole dollar.) Lease Payments Right-of-use Asset/Lease Payable Situation 1 Situation 2 Situation 3 TABLE 6 Present Value of an Annuity Due of $1 PVAD - X (1+1) (1+1) 1.0% 1.5% 2.5% 3.0% 3.5% 4.0% 5.0% 5.5% 7.0% 2.0% 1.00000 9.0% 1.00000 1 1.00000 1.00000 1.00000 1.99010 2.97040 1.00000 1.98522 1.00000 1.97561 4.59 1.00000 1.95694 2.87267 1.00000 1.95238 6.0% 1.00000 1.94340 1.00000 1.94787 1.00000 1.96154 2.88609 2 1.00000 1.93458 1.98039 1.97087 1.96618 8.0% 1.00000 1.92593 2.78326 3.57710 10.0% 11.0% 12.0% 20.0% 1.00000 100000 100000 100000 1.90909 1.90090 1.89286 1.83333 2.73554 2.71252 2.69005 2.52778 3.48685 3.44371 3.40183 3.10648 4.16987 4.10245 4.03735 3.58873 3 2.95588 2.94156 2.92742 2.91347 2.89969 2.85941 2.84632 2.80802 1.91743 2.75911 3.53129 2.83339 3.67301 4 3.94099 3.91220 3.88388 3.85602 3.82861 3.80164 3.74895 3.72325 3.69793 3.77509 4.62990 3.62432 4.38721 5 4.90197 4.85438 4.80773 4.76197 4.71710 4.67308 4.58753 4.54595 4.50515 4.46511 4.31213 4.23972 6 5.85343 5.78264 5.71346 5.64583 5.51505 5.38998 5.32948 5.27028 5.10020 4.99271 4.88965 5.57971 6.41719 5.45182 6.24214 5.21236 5.91732 7 6.79548 6.60143 6.50813 6.32855 6.15787 5.76654 6.69719 7.59821 6.07569 6.78637 5.99553 6.68297 5.62288 6.20637 5.48592 6.03295 8 7.72819 7.47199 7.23028 7.11454 6.89270 9 6.38929 6.97130 8.65168 4.79079 4.69590 4.60478 3.99061 5.35526 5.23054 5.11141 4.32551 5.86842 5.71220 5.56376 4.60459 6.33493 6.14612 5.96764 4.83716 6.75902 6.53705 6.32825 5.03097 7.34939 8.17014 8.97087 8.48593 8.32548 7.00205 7.73274 8.43533 8.01969 7.87396 7.33457 6.58238 7.20979 7.80169 6.74664 7.59589 8.26879 6.53482 7.46321 8.10782 10 9.56602 9.36052 9.16224 8.78611 8.60769 7.95220 7.51523 7.24689 6.99525 7.71008 7.41766 8.02358 8.49867 8.13896 11 10.47130 10.22218 9.982.59 9.75206 9.53020 9.31661 9.11090 8.91272 8.72173 8.53763 8.36009 12 11.36763 11.07112 10.78685 10.51421 10.25262 10.00155 9.76048 9.52892 9.30641 9.09254 8.88687 131225508 11.90751 11.57534 11.25776 10.95400 10.66333 10 38507 10.11858 9.86325 9.61852 9.38384 14 13.13374 12.73153 12.34837 11.98318 11.63496 11.30274 10.98565 10.68285 10.39357 10.11708 9.85268 15 14.00370 13.54338 13.10625 12.69091 12.29607 11.92052 11.56312 11.22283 10.89864 10.58965 10.29498 7.80519 8.16073 8.94269 8.53608 7.14457 6.88923 6.650225.19247 7.49506 720652 6.93770 5.32706 7.81369 749236 7.19437 5.43922 8.10336 7.74987 7.42355 5.53268 8.36669798187 7.62817 5.61057 8.90378 8.48690 9.35765 9.74547 9.24424 8.78615 9.06069 9.31256 16 14.86505 14.34323 13.84926 13.38138 12.93794 12.51741 12.11839 11.73955 11.37966 11.03758 10.71225 10.10791 9.55948 17 15.71787 15.13126 14.57771 14.05500 13.56110 13.09412 12.65230 12.2340211.83777 11.46216 11.10590 10.44665 9.85137 18 16.56225 15.90765 15.29187 14.71220 14.16612 13.65132 13.16567 12.70719 12.27407 11.86461 11.47726 10.76322 10.12164 19 1739827 16.67256 15.99203 15.35336 14.75351 14.18968 13.65930 13.15999 12.68959 12.24607 11.82760 11.05909 10.37189 2018-22601 17.42617 16.67846 15.97889 15.32380 14.70984 14.13394 13.59329 13.08532 12.60765 12.15812 11.33560 10.60360 9.54363 9.75563 8.60608 8.19087 7.81086 5.67547 8.82371 8.37916 797399 5.72956 9.02155 8.54879 8.11963 5.77463 9.20141 8.70162 8.24967 5.81219 9.36492 8.83929 8.36578 5.84350 9.95011 21 19.04555 18.16864 17.35143 16.58916 15.87747 15.21240 14.59033 14.00794 13.46221 12.95038 12.46992 11.59401 10.81815 10.12855 9.51356 8.96333 8.46944 5.86958 25 22 24339 21.03041 19.91393 18.88499 17.93554 17.05837 16 24696 15.49548 14.79864 14.15170 13.55036 12.46933 11.52876 10.70661 9.98474 934814 8.78432 5.93710 30 26.06579 24.37608 22.84438 21.45355 20.18845 19.03577 17.98371 17.02189 16.14107 15.33310 14.59072 13.27767 12.15841 11.19828 10.36961 9.65011 9.02181 5.97472 40 33.16303 30.36458 27.90259 25.73034 23.80822 22.10250 20.58448 19.22966 18.01704 16.92866 15.94907 14.26493 12.87858 11.72552 10.75696 9.93567 9.23303599592