Hardev Each of the three independent situations below describes a finance lease in which annual lease payments are payable at thebeginning 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 (known by lessee)Lessee's incremental borrowing rateFair value of lease assetSituation 1Situation 2Situation 31Payable1011%12%$600,000Situation2209%10%$980,0003412%10%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.Lease Payments Right-of-use Asset/Lease$185,000

The lease refers to a legal agreement between two parties in which one party take purchases the…

Each of the three 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 (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset 1 10 11% 12% $600,000 Situation 2 20 9% 10% $980,000 3 4 12% 10% $185,000 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.