Exercise $15-9($Algo$)$ Lessor calculation of annual lease payments; lessee calculation of asset and $[$LO$15-2]$

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)$

$\backslash$table$[[$A$,$Situation$],[1,2,3],[$Lease term $($years$),11,21,5],[$Lessor$\text{'}$s rate of return $($known by lessee$),11\%,9\%,12\%],[$Lessee$\text{'}$s incremental borrowing rate,$12\%,10\%,(11\%],[$Fair value of lease asset,$$670,000,$$$1,050,000,$$$255,000]]$

Required:

a$.$ & b$.$ Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would recor right$-$of$-$use asset and a lease liability, for each of the above situations.

Note: Round your answers to the nearest whole dollar.

Answer is complete but not entirely correct.

$\backslash$table$[[,$Lease Payments,Right$-$of$-$use Asset$/$Lease Payable$],[$Situation $1,$$$,100,988*,$$$,670,000(],[$Situation $2,$$$,105,451*,$$$,1,050,000],[$Situation $3,$$$,63,140*,$$$,255,000]]$