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For each of the three independent situations below determine the amount of the annual lease payments....

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Accounting

For each of the three independent situations below determine theamount of the annual lease payments. Each describes a finance leasein which annual lease payments are payable at the beginning of eachyear. Each lease agreement contains an option that permits thelessee to acquire the leased asset at an option price that issufficiently lower than the expected fair value that the exerciseof the option appears reasonably certain. (FV of $1, PV of $1, FVAof $1, PVA of $1, FVAD of $1 and PVAD of $1) (Useappropriate factor(s) from the tables provided.)

Situation
123
Lease term (years)554
Lessor's rate of return9%10%8%
Fair value of leased asset$84,000$432,000$197,000
Lessor's cost of leased asset$62,000$432,000$157,000
Purchase option:
Exercise price$22,000$62,000$34,000
Exercisable at end of year:553
Reasonably certain?yesnoyes


Determine the annual lease payments for each situation:(Round your intermediate and final answers to the nearestwhole dollar amount.)

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