Exercise 15-28 (Static) Calculation of annual lease payments; purchase option [LO15-2, 15-6] Three independent situations are given. 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. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Situation 1 Lease term (years) Lessor's rate of return 5 12% 5 4 11% 9% Fair value of leased asset $ 60,000 Lessor's cost of leased asset $ 50,000 $420,000 $ 420,000 $ 185,000 $145,000 Purchase option: Exercise price $ 10,000 $ 50,000 $ 22,000 Exercisable at end of year: 5 5 3 Reasonably certain? yes yes Determine the annual lease payments for each situation: Note: Round your intermediate and final answers to the nearest whole dollar amount. Situation 1 Situation 2 Situation 3 Annual Lease Payments