Fox Co. leases equipment for 10 years, prepaying Owl Co. $100,000 before lease commencement date. Owl then paid Fox $50,000 as a lease incentive to terminate another lease in which Fox was lessee. Fox also paid an attorney $11,000 to negotiate the deal and draft the lease contract which requires Fox paying $65,000 at the beginning of each month for the 10 lease year. Fox's discount rate is 5%.

What is Fox’s Initial Lease Liability?

What amount should Fox initially record for its right-of-use asset?

What amount would Fox initially record for its right-of-use asset if the lease was a finance-type lease?