Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year.

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. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

 Situation 123Lease term (years)11215Lessor's rate of return (known by lessee)11%9%12%Lessee's incremental borrowing rate12%10%11%Fair value of lease asset$670,000$1,050,000$255,000

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 situation 1,2 and 3

right of use Asset/lease payable 1,2,3