Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January $1,2025.$ The lease is for an $8-$year period

and requires equal annual payments of $$35,004$ at the beginning of each year. The first payment is received on January $1,2025.$

Crosley had purchased the machine during $2024$ for $$160,000.$ Collectibility of lease payments by Crosley is probable. Crosley set the

annual rental to ensure a $6\%$ rate of return. The machine has an economic life of $10$ years with no residual value and reverts to Crosley

at the termination of the lease. Assume that Dexter Corporation does not know the rate implicit in the lease used by Crosley, and

Dexter's incremental borrowing rate is $8\%.$ In addition, assume that Dexter incurs initial direct costs of $$15,000.$

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$($a$)$

Your answer is incorrect.

Compute the amount of the lease liability and right$-$of$-$use asset for Dexter. $($For calculation purposes, use $5$ decimal places as

displayed in the factor table provided and round final answers to $0$ decimal places e$.$g$.5,275.)$

Lease liability

$

Right$-$of$-$use asset

$