I am having trouble figuring out situation #4. I referred to a similar question and followed their approach for step 1, which was taking the annual lease payments of $19,000 and multiplying it by Lease term (years) 4 and adding Unguaranteed Residual Value $7,600. But it is wrong.

Question:

Each of the independent situations below describes a sales-type lease in which annual lease payments of $19,000 are payable at the beginning of each year. Each is a finance lease for the lessee.

	Situation #4
Lease Term (years)	4
Asset's Useful Life (years)	7
Lessor's Implicit Rate (known by lessee)	12%
Residual Value:
Guaranteed by lessee	0
Unguaranteed	$7,600
Purchase options:
After (years)	3
Exercise Price	$4,800
Reasonably certain?	Yes

Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.)

			Situation #4
A	The Lessors's
	1. Lease Payments
	2. Gross Investment in the lease
	3. Net Investment in the lease
B	The Lessee's
	4. Lease Payments
	5. Right-of-use Asset
	6. Lease Payable

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19.000 are payable at the beginning of each year. Each is a finance lease for the lessee. (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 2 1 3 4 12 5 120 5 12 4 7 120 0 Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? $7,600 0 $3,800 $3,800 $7,600 3 none n/a n/a $8,800 no 4. $2,800 no 3 $4,800 yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation 1 2 3 S 76,000 76,000 64,635 83,600 83,600 69,465 83,600 83,600 69,465 A. The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease B. The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable 76,000 64,635 64,635 76,000 64,635 64,635 76,000 64,635 64,635