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, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $11 1 Situation 2 3 Lease term (years) Lesson's rate of return 6 12% 6 5 10% 8% Fair value of leased asset $ 76,000 Lesson's cost of leased asset $ 58,000 $ 428,000 $ 428,000 $ 193,000 $ 153,000 Purchase option: Exercise price $ 18,000 $ 58,000 $ 30,000 Exercisable at end of year: 6 6 Reasonably certain? yes no yes Determine the annual lease payments for each situation: Note: Round your intermediate and final answers to the nearest whole dollar amount. Annual lease payments Situation 1 Situation 2 Situation 3