Megabits Co. leased an equipment on January 1, 2019 with the following information:

Fixed annual payment at the end of each year 1,000,000

Lease term 4 years

Useful life of the equipment 5 years

Implicit interest rate 10%

PV of an annuity of 1 for 4 years 3.16987

PV of 1 for 4 periods Required:

1. Compute for the cost of right-of-use asset

2. Prepare a table of amortization

3. Record the first payment

4. Record the depreciation