Jamiu Inc. leased production machinery to MT Automotive on October

$1,2019.$ The terms of the lease are as follows:

MT Automotive accounts for lease and non$-$lease costs separately.

Other information pertaining to the lessee follows:

Expected payout on guaranteed residual

Lessee's depreciation method

Lessee's incremental borrowing rate

Lessee's year end is September $30$

Implicit rate in lease

Not readily determinable

Required:

a$)$ Calculate the amount that MT Automotive must initially recognize as

aright$-$of$-$use $($ROU$)$ asset under this contract, using a financial

calculator.

b$)$ Prepare an asset depreciation schedule using Excel that covers the

useful life of the equipment. Confirm the initial measurement of the

ROU asset using the Excel PV function.

c$)$ Prepare a lease liability amortization schedule for the life of the lease using

Excel.

d$)$ Prepare all journal entries for MT Automotive related to the lease

for the year ended September $30,202$X$,$ including the entry at

the inception of the lease, the lease payment, and any adjusting

journal entries at year end.