H1. Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end ofeach year. The lessee is aware of the lessor's implicit rate of return. (EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of$1) (Use appropriate factor(s) from the tables provided.)Lease term (years)Lessor's rate of returnLessee's incremental borrowing rateFair value of lease assetSituation 11Situation 2Situation 311210%11%PayableSituation2153411%Required:a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record asa right-of-use asset and a lease liability, for above situations. (Round your answers to nearest whole dollar.)Lease Payments Right-of-use Asset/Lease8%9%10%$800,000 $1,080,000 $285,000

Lease payments refer to an amount being paid at every fixed lease period in exchange for using an…

Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end of each year. The lessee is aware of the lessor's implicit rate of return. (EV 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 (years) Lessor's rate of return Lessee's incremental borrowing rate Fair value of lease asset Lease Payments Right-of-use Asset/Lease 1 12 Payable Situation 2 15 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 above situations. (Round your answers to nearest whole dollar.) 10% 8% 9% 11% $800,000 $1,080,000 3 4 11% 10% $285,000