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How should this be solved? Exercise 15-10 Lessor calculation of annual lease payments; lessee...

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Exercise 15-10 Lessor calculation of annual lease payments; lessee calculation of asset and liability [LO15-2] Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end of each year. The lessee is aware of the lessor's implicit rate of return. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Situation 20 Lease term (years) Lessor's rate of return Lessee's incremental borrowing rate Fair value of lease asset 12 10% 118 89 9% 11% 10% $740,000 $1,055,000 $260,000 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 above situations. (Round your answers to nearest whole dollar.) Lease Payments Right-of-use Asset/Lease Payable Situation 1 Situation 2 Situation 3

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