Help! I am not sure what I am doing wrong! I have tried every way possible and I still do not understand.

Analyzing, Interpreting, and Capitalizing Operating Leases On January 1, 2020, Alexander Mack Adventures Inc. entered into land leases that grant unrestricted access to property in Texas where the company plans to build an RV resort. Lease details follow.

• Lease term: 15 years.
• Upfront fees: $450,000 paid in cash.
• Annual lease payment: $600,000 due at each year-end.
• Lessee responsible for property tax and insurance.

The company also leased computer equipment with the following details.

• Lease term: 4 years.
• Upfront fees: $5,000.
• Annual lease payments: $29,633.
• Lessee has option to purchase equipment for $1 at end of lease.

Required Note: For the following questions, round your answers to the nearest whole dollar; use rounded amounts for further calculations. a. Given the lease contract facts, determine the classification for each of the two leases (operating or finance). Land lease: AnswerOperating leaseFinance lease

Computer equipment lease: AnswerOperating leaseFinance lease

b. Determine the amount of the lease liability that Alexander Mack will add to its balance sheet at the inception of each lease. The company has a 9% cost of debt capital. Land lease: $Answer

Computer equipment lease: $Answer

c. What asset will the company add to its balance sheet for each lease?

Land lease:	AnswerRight-of-use assetPPELease assetN/A	Answer
Computer equipment lease:	AnswerRight-of-use assetPPELease assetN/A	Answer

d. For each lease, prepare an amortization schedule that shows the interest and principal portions of each lease payment. Note: Adjust the final year for any rounding differences.

Land Lease:		Implicit Interest	Lease Amortization	Lease Liability, End
	Lease Liability,	(Lease Liability,	(Lease payment	(Lease Liability, Start
Year	Start	Start x 9%)	Implicit interest)	Lease Amortization)
1	Answer	Answer	Answer	Answer
2	Answer	Answer	Answer	Answer
3	Answer	Answer	Answer	Answer
4	Answer	Answer	Answer	Answer
5	Answer	Answer	Answer	Answer
6	Answer	Answer	Answer	Answer
7	Answer	Answer	Answer	Answer
8	Answer	Answer	Answer	Answer
9	Answer	Answer	Answer	Answer
10	Answer	Answer	Answer	Answer
11	Answer	Answer	Answer	Answer
12	Answer	Answer	Answer	Answer
13	Answer	Answer	Answer	Answer
14	Answer	Answer	Answer	Answer
15	Answer	Answer	Answer	Answer

Computer equipment lease:		Implicit Interest	Lease Amortization	Lease Liability, End
	Lease Liability,	(Lease Liability,	(Lease payment	(Lease Liability, Start
Year	Start	Start x 9%)	Implicit interest)	Lease Amortization)
1	Answer	Answer	Answer	Answer
2	Answer	Answer	Answer	Answer
3	Answer	Answer	Answer	Answer
4	Answer	Answer	Answer	Answer

e. What will be the income statement effect of the land lease in 2020? $Answer

of expense f. What will be the income statement effect of the equipment lease in 2020? $Answer

of expense g. For fiscal 2020, what additional disclosure would Alexander Mack make in its footnotes pertaining to the remaining land lease payments?

	December 2020
2021	Answer
2022	Answer
2023	Answer
2024	Answer
2025	Answer
Thereafter	Answer
Total undiscounted lease payments	Answer
Imputed interest	Answer
Total operating lease liability	Answer
Weighted average remaining lease life in years	Answer
Weighted average discount rate	Answer

h. On December 31, 2021, what amount will be on the balance sheet (asset and liability) for each of the leases?

	Asset	Liabilities
Land lease:	Answer	Answer
Computer equipment lease:	Answer	Answer