Vinubhai Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginningof each year. The lessee is aware of the lessor's implicit rate of return.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 $1)Lease term (years)Lessor's rate of returnFair value of lease assetLessor's cost of lease assetResidual value:Estimated fair valueGuaranteed fair valueSituation 1Situation 2Situation 3Situation 4Lease Payments$$$$113,824 $44,650 $11,009 $60,14669%$ 68,000$ 68,000000002Residual Value PV of LeaseGuaranteePaymentsSituation$368,000$368,000910%$ 68,00003$$$Required:a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as aright-of-use asset and a lease liability, for each of the above situations.Note: Round your answers to the nearest whole dollar amount.78%$ 93,000$ 63,000$ 25,000$ 25,000PV of ResidualValue Guarantee40$0$0 $$1011%$ 483,000$ 483,000$ 37,000$ 42,000Right-of-useAsset/LeaseLiability68,000368,00093,000483,000

A lease is defined as a contractual agreement incorporated between two business entities where one…

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. 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 $1) Lease term (years) Lessor's rate of return Fair value of lease asset Lessor's cost of lease asset Residual value: Estimated fair value Guaranteed fair value Situation 1 Situation 2 Situation 3 Situation 4 Lease Payments $ $ $ $ Residual Value Guarantee 13,824 $ 44,650 $ 11,009 $ 60,146 1 $ 68,000 $ 68,000 6 9% 0 0 0 0 0 2 Situation $368,000 $368,000 PV of Lease Payments 9 10% $ 68,000 0 3 Required: a. & b. Determine the amount of the annual lease payments as 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. Note: Round your answers to the nearest whole dollar amount. $ $ $ $ 93,000 $ 63,000 7 8% $ 25,000 $ 25,000 PV of Residual Value Guarantee 0 0 0 4 $ $ $ $ 10 11% $ 483,000 $ 483,000 $ 37,000 $ 42,000 Right-of-use Asset/Lease Liability 68,000 368,000 93,000 483,000