Q. The following information describes a finance lease in which annual lease payments are payable at the beginning of each year. 1. The lease term is 5 years. 2. The lessor's rate of return is 10%. The lessee knows the implicit rate of return of the lessor. 3. The lessee's implicit rate is 11%. 4. The fair value of the leased asset is $150,000 5. The residual value of the leased asset is $14,000. The lessee guarantees the residual value for the lessor. Required: 1. Calculate the amount of the annual lease payments as calculated by the lessor. 2. Calculate the amount the lessee would record at the inception of the lease if he/she makes the lease payments at the end of the period. Record the entry