Exercise 15-10 Lessor calculation of annual lease payments; lessee calculation of asset and liability [LO15-2] 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.) Situation 15 Lease term (years) Lessor's rate of return Lessee's incremental borrowing rate Fair value of lease 10% 11% 11% 10% 8% asset $640,000 $1,000,000 $205,000 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.) Right-of-use Asset/Lease Payable Lease Payments Situation 1 Situation 2 Situation3