For each of the three independent situations below determine the amount of the annual lease payments Each describes a capital 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. (FV of $1. PV of $1. FVA of $1PvA of $1. FVAD of $1 and PVAD of $1 ) (Use appropriate factor(s) from the tables provided.) Situation 10 11% Lease term (years) Lessor's rate of return Fair value of leased asset Lessor's cost of leased asset Bargain purchase option 10% 9% S100,000 440,000 S205,000 S 70,000 440,000 165,000 Option price Exercisable at end of year. S 30,000 S70,000 S 42,000 Determine the annual lease payments for each situation: Annual lease payments Situation 1 Situation 2 Situation 3