Exercise 15-28 (Algo) Calculation of annual lease payments; purchase option [LO15-2, 15-6] For each of the three independent situations below determine the amount of the annual lease payments. Each describes a finance lease in which annual lease payments are payable at the beginning of each year. Each lease agreement contains an option that permits the lessee to acquire the leased asset at an option price that is sufficiently lower than the expected fair value that the exercise of the option appears reasonably certain (EV of St. PV of S1. EVA of $1. PVA of $1 EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Loase tern (years) Lecours rate of return Fair value of leased asset Lessor's cost of lessed asset Purchase option: Exercise price Exercisable at and of your: Feszonably certain? Situation $ 70,000 10% $100,000 $440,000 $440,000 11% $205,000 $165,000 $30,000 4 $ 70,000 $ 42,000 4 Determine the annual lease payments for each situation: (Round your intermediate and final answers to the nearest whole dollar amount.) Situation 11 Annual lease payments Situation 21 Situation 3