Hi, could you assist me in answering this? I would appreciate clear solutions. Thank you.

SALE AND LEASEBACK Problem 15-11 At the beginning of current year, Racquel Company sold a building and immediately leased it back. The following data pertain to the sale and leaseback transaction: Sale price at above fair value Fair value of building Carrying amount of building Annual rental payable at the end of each year Remaining life of building Lease term Implicit interest rate Present value of an ordinary annuity of 1 at 12% for four periods 1. What is the initial lease liability? a. 1,822,200 b. 2,400,000 9,000,000 8,000,000 7,200,000 600,000 20 years 4 years 12% 3.037 c. 1,200,000 d. 1,000,000 600,000 x 3.037 = 1,822,200 2. What is the cost of right of use asset?