Information has been gathered for two leases:

LEASE A

The fair value of the equipment is $$761,700$ at the inception of the lease.

The lease term is five years, and there is a $3-$year renewal term at the option of the lessor.

Annual lease payments are $$133,000$ per year for the first $5$ years and $$114,000$ for the next $3$ years. Payments are due at the beginning of each lease year.

All lease payments include the cost of insurance, estimated at $$14,000$ per year.

The lessee has a residual guarantee value of $$28,000$ at the end of the $8$th year.

The lessee does not know the lessor$$s implicit rate of interest in the lease. The lessee$$s incremental borrowing rate is $8\%.$

LEASE B

The fair value of the equipment is $$628,100$ at the inception of the lease.

The lease term is $5$ years.

Annual lease payments are $$133,000$ per year. Payments are due at the beginning of each lease year.

The lessee is offered a purchase option for the asset for $$20,000$ at the end of the lease term which is expected to be exercised.

The lease payments include the cost of insurance, estimated at $$8,000$ per year.

The lessor$$s implicit rate of interest in the lease is $6\%$ and is known to the lessee. The lessee$$s incremental borrowing rate is $8\%.$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Calculate the present value of the right$-$of$-$use assets for each lease. $($Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.$)$