TB Problem 5-107 (Algo) Each of the independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit interest rate. (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.) Lease term Lessor's desired rate of return Lessee's incremental borrowing rate Amount of lease For convenience, here are some table values: Situation 1 2 10yrs 8% 10% 20yrs 10% 8% $790,000 $590,000 Periods; int. rate PV, ordinary annuity PV, annuity due 10 periods, 8% 6.7101 7.2469 6.1446 6.7590 9.8181 8.5136 10.6036 9.3649 10 periods, 10% 20 periods, 8% 20 periods, 10% Required: For each situation determine the amount recorded as a liability by the lessee at the beginning of the lease.(Round your intermediate and final answer to the nearest whole dollar.) Situation 1 Situation 2 Amount of Liability $ 790,000