Exercise $15-9($Algo$)$ Lessor calculation of annual lease payments; lessee calculation of asset and liability

$[$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)$

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.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)$

$$ Situation

$123$

Lease term $($years$)10206$

Lessor's rate of return $($known by lessee$)11\%9\%12\%$

Lessee's incremental borrowing rate$12\%10\%11\%$

Fair value of lease asset$$780,000$ $$1,160,000$ $$365,000$

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.