CH 15: HW Problem Set 2 Exercise 15-9 (Algo) Lessor calculation of annual lease payments; lessee calculation of asset and liability (LO15-2) 100 points 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. (FV of $1. PV of $1. FVA of S1 PVA of $1. FVAD of $1 and PVAD of 51) (Use appropriate factor(s) from the tables provided.) Situation 119 125 Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset $710.00 $1,090,000 $295,000 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 ability for each of the above situations. (Round your answers to the nearest whole dollar) Lease Payments of use Asselease Station 1 Situation 2 Situation 3