3 Points Watson Co. entered into a lease arrangement for a truck on 1 April 20X2 that had the following terms: The lease payments are $12,500 per year, payable each 1 April for four years. The lease may be renewed at the option of the lessor for a further five years for $3,600 per year. Based on an allocation of the lease payment on relative stand-alone prices, the lease and non-lease components (maintenance) are $11,300 and $1,200 respectively. Expected amounts to be paid under the residual value guarantee are $15,000 if the lessee ends the lease at the end of the first lease term, and $5,000 if they end the lease at the end of the second lease term. 04.08.20 The leased asset has a useful life of ten years and a fair value of $70,000. The interest rate implicit in the lease is 7% eBook References (PV of $1, PVA of $1, and PVAD of $3) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Calculate the right-of-use asset. (Round the intermediate and final answer to the nearest whole dollar amount.) Right-of-use asset 1-b. Record the initial journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round Intermediate calculations and final answers to the nearest whole dollar amount.) View transaction fat Journal entry worksheet Record the inception of lease. 10 3 points Amortization Table Payment Opening Interest Period Balance 20x2 20x3 2004 04.0733 2005 Book Cash Payment Decrease in Balance Ending Balance You skipped this question in the previous tempe Referenc 3. List the items that would appear in the lessee's SCI for the year ended 31 December 20X3. (Round the intermediate and final answers to the nearest whole dollar amount.) Statement of comprehensive Income 4. What is the amount of the total lease liability on the balance sheet on 31 December 20X37 Split this amount into the current and long-term portions (Round the Intermediate and final answers to the nearest whole dollar amount.) Statement of Financial P Lassa lability 31 December 20x3