Dewey Corp leases to Hughey Co machinery on January 1, 2021. The book value of the machinery to Dewey Corp was $$450,000. The terms of the lease are seven (7) annual lease payments of $87,500 made at the beginning of each year. The present value of the lease payments at 10% is $468,583. The lease includes a guaranteed residual value of $40,000. Hughey expects the residual value of the machine at the termination of the lease to be $50,000. The present value of the guaranteed residual value at 10% is $20,526.

(Hint: Prepare an amortization schedule for both Dewey Corp and Hughey Co

(1) On January 1, 2021, Hughey Co will record a Right of Use Asset in the amount of: (Show your answer as: $xxx,xxxx)Question Blank(

2) On January 2, 2021, Dewey Corps Lease Receivable will have a balance of: (Show your answer as: $xxx,xxxx)Question Blank

(3) On its December 31, 2022, income statement, Hughey Co will report Interest Expense from the lease in the amount of: (Show your answer as: $xxx,xxx)Question Blank

(4) On its December 31, 2022, income statement, Dewey Corp will report Interest Income from the lease in the amount of: (Show your answer as: $xxx,xxxx)Question Blank

(5) On its December 31, 2022, income statement, Hughey Co will report Amortization Expense from the lease in the amount of: (Show your answer as: $xxx,xxxx)Question Blank

(6) On December 30, 2027, Dewey Corps Lease Receivable will have a balance of: (Show your answer as: $xxx,xxxx)Question Blank