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Aarmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need it for only 3 years even though the compressor's
Aarmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need it for only 3 years even though the compressor's economic fe is long enough so that the lease is an operating lease. The firm can lease the compressor for 3 years with $30,000 lease payments at the end of each year. APB's cost of debt is 8%. Answer the following questions. (Hint; See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ D. What is the initial right-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent. 5 c. What will HPB report as the Year-1 lease expense? Round your answer to the nearest cent. Enter your answer as a positive value. 5. d. What is the Year-1 imputed interest expense? Do not round intermediate calculations, Round your answer to the nearest cent. Enter your answer as a positive value. 5. e. What lease llability must be reported at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. f. What fiaht-of-use asset must be reported at Year 17 Do not round intermediate calculations. Round your answer to the nearest cent. $
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