The three independent situations below describe a nonoperating 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.

		Situation
	1	2	3
Lease term (years)	10	20	4
Lessor's rate of return (known by lessee)	11%	9%	12%
Lessee's incremental borrowing rate	12%	10%	11%
The fair value of a leased asset	$600,000	$980,000	$185,000

Required:

Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a leased asset/liability, for the above situations.