None Exercise 15-24 (Algo) Calculation of annual lease payments; residual value [LO15-2, 15-6]Each of the four Independent situations below describes a finance lease in which annual lease paymentsare 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 andPVAD of $1)Situation235869%10%8%Lease term (years)Lessor's rate of returnFair value of lease asset $ 69,000 $369,000Lessor's cost of lease asset $ 69,000 $369,000Residual value:Estimated fair valueGuaranteed fair value11%$ 94,000 $ 484,000$ 64,000 $ 484,000$ 69,000 $ 26,000 $ 38,00000$ 26,000 $43,000Required:a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount thelessee 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.Lease Payments Residual ValueGuaranteePV of LeasePaymentsPV of ResidualValue GuaranteeRight-of-useAsset/LeaseLiabilitySituation 1Situation 2Situation 3Situation 4

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 Situation 2 3 5 9% 8 6 10% 8% $ 69,000 $369,000 11% $94,000 $ 484,000 Lessor's cost of lease asset $ 69,000 $369,000 $ 64,000 $ 484,000 Residual value: Estimated fair value Guaranteed fair value e $ 69,000 $ 26,000 $ 38,000 0 $ 26,000 $43,000 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.