Each of the three independent situations below describes a capital 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 $1 and pvad of $1) (use appropriate factor(s) from the tables provided.)

situation
1 2 3
lease term (years) 12 20 4
lessor’s rate of return (known by lessee) 11% 9% 12%
lessee’s incremental borrowing rate 12% 10% 11%
fair value of leased asset $620,000 $1,000,000 $205,000

required:
a.
determine the amount of the annual lease payments as calculated by the lessor and above situations.