Applying New Lease Accounting Standards for Operating Leases

On January $1$ of the current year, $CCH$ Corporation entered into the following lease contract. Based on the facts, $CCH$ Corporation classifies the lease as an operating lease.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces belaw with two decimal places.

a$.$ Explain how the facts support the classification of the lease as an operating lease.

b$.$ Determine the amount of the lease liability that $CCH$ will add to its balance sheet at the inception of the lease.

Amount of lease liability

$5499,969**$

c$.$

What amount will be added to the balance sheet as an asset?

Amount added as an asset.

What will $CCH$ Corporation call the asset on the balance sheet?

d$.$ Prepare a lease amortization schedule that shows the interest and principal portions of each lease paryment.

amortization for those same two years.

Note: For each account category, indicate the appropriate account name. Enter $"$N$/$A$"$ for arry account category that is not used for a given transaction.

Note: Indicate a decrease in an account category by including a negative sign with the amount.

f$.$ At the end of the current year, what additional disclosure would $CCH$ make in its footnotes pertaining to the four remaining lease payments?