$($LO$16-4)$ The Harris Company is the lessee on a four$-$year lease with the following payments at the end of each year:

Year $1$: $$10,000$

Year $2$: $$15,000$

Year $3$: $$20,000$

Year $4$: $$25,000$

An appropriate discount rate is $7$ percent, yielding a present value of $$48,055.$

a$.$ If the lease is an operating lease,

i$.$ What will be the initial value of the right$-$of$-$use asset?

ii$.$ What will be the initial value of the lease liability?

iii. What will be the lease expense shown on the income statement at the end of year $1?$

$iv.$ What will be the interest expense shown on the income statement at the end of year $1?$

$v.$ What will be the amortization expense shown on the income statement at the end of year $1?$

b$.$ If the lease is a finance lease,

i$.$ What will be the initial value of the right$-$of$-$use asset?

ii$.$ What will be the initial value of the lease liability?

iii. What will be the lease expense shown on the income statement at the end of year $1?$

$iv.$ What will be the interest expense shown on the income statement at the end of year $1?$

$v.$ What will be the amortization expense shown on the income statement at the end of year $1?$