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Each of the four independent situations below describes a finance lease in which annual lease...

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Accounting

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Each of the four 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 rate of return. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual values Estimated fair value Guaranteed fair value 108 $64,000 $64,000 Situation 2 3 7 5 118 98 $364,000 $89,000 $364,000 $59,000 8 128 $479,000 $479,000 0 0 $ 64,000 0 $21,000 $21,000 $ 33,000 $ 38,000 Required: a. & b. Determine the amount of the annual lease payments s calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. (Round your answers to the nearest whole dollar amount.) Situation 1 Situation 2 Situation 3 Situation 4 Lease Payments Residual Value PV of Lease PV of Residual Guarantee Payments Value Guarantee $ 364,000 $ o $ 18,355 $ ols $ 0 $ 0 $ $ 0 $ o $ $ Right-of-use Asset/Lease Liability 18,355 0 0 0

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