Each of the four independent situations below describes a sales-type lease in which annual lease payments of $100,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Determine the following amounts at the beginning of the lease: 

A. The lessor’s 

1. Lease payments 

2. Gross investment in the lease 

3. Net investment in the lease 

B. The lessee’s 

4. Lease payments 

5. Right-of-use asset 

6. Lease liability 

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Situation 1 2 3 4 Lease term (years) 7 7 8 8 Lessor's and lessee's interest rate 9% 11% 10% 12% Residual value: $50,000 $8,000 $8,000 $50,000 $60,000 Estimated fair value Guaranteed by lessee