At January 1, 2022, Melody Company leased a machine from Beta Manufacturer. The following information pertains to the lease

Lease term 3 years

Annual lease payments beginning January 1, 2022 and at each December 31 thereafter through 2023 $80,000

Present value of lease payments at 6% (selling price of machine) $226,671

Beta Manufacturer's implicit rate (known by Melody) 6%

On December 31, 2024, the machine reverts back to Beta. Both companies use straight-line depreciation/amortization. Assume useful life of machine is 3 years. The lease is classified as a finance lease/sales-type lease:

1. What is the amount related to the lease that Melody will report in its income statement for the year ended December 31, 2022? (Ignore income taxes.)_________________

2. What is the balance of lease liability that Melody will report in its balance sheet at December 31, 2022?_________________

3. What is the balance of right-of-use asset that Melody will report in its balance sheet at December 31, 2022?_________________

4. What is the amount related to the bonds that Melody will report in its statement of cash flows for the year ended December 31, 2022? Indicate the category in which to classify cash flows.___________ activities at____________ (amount) ______________activities_____________ (amount)

5. Assume the cost of the machine on Beta's book is $214,671. What is the amount related to the lease that Beta will report in its income statement for the year ended December 31, 2022?________________

Part 2: At January 1, 2022, Melody Company leased a machine from Beta Manufacturer. The following information pertains to the lease:

Lease term 3 years

Annual lease payments beginning January 1, 2022 and at each December 31 thereafter through 2023 $80,000

Present value of lease payments at 6% $226.671

Beta Manufacturer's implicit rate (known by Melody) 6%

On December 31, 2024, the machine reverts back to Beta. Both companies use straight-line depreciation/amortization. Assume useful life of machine is 5 years. Fair value of equipment is $400,000. The lease is classified as an operating lease:

6. What is the balance of right-of-use asset that Melody will report in its balance sheet at December 31, 2022?____________