Harmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need it for only 5 years even though the compressor's economic life is long enough so that the lease is an operating lease. The firm can lease the compressor for 5 years with $20,000 lease payments at the end of each year. HPB's cost of debt is 15%. Answer the following questions. (Hint: See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. What is the initial riaht-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What will HPB report as the Year-1 lease expense? Round your answer to the nearest cent. Enter your answer as a positive value. $ d. What is the Year-1 imputed interest expense? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ e. What lease liability must be reported at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ f. What riaht-of-use asset must be reported at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. $ Part 2: Reporting an Operating Lease Part 3: Reporting a Finance Lease Notes: The lease llability in Year o is equal to the inltial lease llablity. For subsequent years, the lease llability balance is equal to the previous balance plus the imputed interest minus the lease payment. -The imputed interest for the end of Year t is equal to the cost of debt {rd multplied by the lease llablity payment at the beginning of Year t The right-of-use asset balance for an operating lease is equal to the lease lability balance. The lease expense for an operating lease is equal to the lease payment. -The right-of-use balance for a finance lease is equal to the previous balance minus the amortization expense. The interest expense for a finance lease is equal to the imputed interest. The amortization expense for a finance lease is equal to intial right-of-use asset divided by the number of years of the lease