1 Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19,000 are payable atthe beginning of each year. Each is a finance lease for the lessee.Lease term (years)Asset's useful life (years)Lessor's implicit rate (known by lessee)Residual value:Guaranteed by lesseeUnguaranteedPurchase option:A. The lessor's1. Total lease payments2 Gross investment in the lease1$ 76,00076,0002Situation176,00083,6004412%$0$0Answer is complete but not entirely correct.3none2133,000 X83,600SituationDE 3$ 7,600$04512%After (years)Exercise priceReasonably certain?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 $1)Determine the following amounts at the beginning of the lease:Note: Round your final answers to nearest whole dollar.3$ 8,800no495,000 X98,800 X4512%$ 3,800$ 3,8004$ 2,800no44712%$0$ 7,6003$ 4,800yes

An agreement of contract that is prepared to transfer the right to use the resources for a…

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $19,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? 1 4 4 12% $0 $0 none 2 Situation 4 5 12% $7,600 $0 3 $ 8,800 no 3 4 5 12% $ 3,800 $3,800 4 $ 2,800 no 4 4 7 12% $0 $7,600 3 $4,800 yes