Lease Accounting.

On January $1,$ Moran Inc. entered into a noncancelable $10-$year lease for computer equipment with a fair value of $$120$ million and requiring annual $$16\mathrm{.}304$ milion year$-$end lease payments. The company's year$-$end is December $31.$ The implicit interest rate is $6\%.$

Required

Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded in the financial statements with regard to the lease on January $1?$

Note: Use Excel and round to the nearest million $($i$.$e$.$ show $128\mathrm{.}543$ as $129)$

A Finance lease asset and a finance lease liability will be capitalized on the balance sheet for: $ million.

$2.$ Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded with regard to the lease on December $31($at the end of the first year$)?$

Note: Round all entries to three decimal points. Use rounded amounts in any further calculations.

$\backslash$table$[[$Item$,$Increase$/$Decrease$,,,],[$Cash$,,$$$,0,$million$],[$Interest expense,hat$(**),$$$,0,$million$],[$Lease obligation,$>,$$$,0,$million$],[$Amortization expense,$>,$$$,0,$million$],[$Leased asset,,$$,0,$million$]]$

What are the total expenses associated with the lease in the second year if it is accounted for as an operating lease? As a finance lease?

Note: Round all entries to three decimal points.

$\backslash$table$[[$Expense Item $($millions$),$Operating Lease,Finance Lease$],[$Operating lease expense,$$,$$