Johnstone Company is facing several decisions regardinginvesting and financing activities. Address each decisionindependently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of$1 and PVAD of $1) (Use appropriate factor(s) from thetables provided.)

1. On June 30, 2018, the Johnstone Companypurchased equipment from Genovese Corp. Johnstone agreed to payGenovese $27,000 on the purchase date and the balance in eightannual installments of $4,000 on each June 30 beginning June 30,2019. Assuming that an interest rate of 10% properly reflects thetime value of money in this situation, at what amount shouldJohnstone value the equipment?
2. Johnstone needs to accumulate sufficient fundsto pay a $570,000 debt that comes due on December 31, 2023. Thecompany will accumulate the funds by making five equal annualdeposits to an account paying 7% interest compounded annually.Determine the required annual deposit if the first deposit is madeon December 31, 2018.
3. On January 1, 2018, Johnstone leased an officebuilding. Terms of the lease require Johnstone to make 20 annuallease payments of $137,000 beginning on January 1, 2018. A 10%interest rate is implicit in the lease agreement. At what amountshould Johnstone record the lease liability on January 1, 2018,before any lease payments are made?