On 1 January 20X1, Chakrobati Ltd., a public company, entered into a 5-year equipment lease with Hudovernik Leasing Corporation. The lease calls for annual lease payments of $220,000, payable at the beginning of each lease year. Upon examination of the lease document, you find no evidence of a title transfer or purchase option. Therefore, assume no residual value and that Chakrobati returns the asset to Hudovernik Leasing Corporation at the end of the lease term. Chakrobati's incremental borrowing rate is 6%. Chakrobati does not know the lessor's interest rate. The fair value of the equipment is $952,823. Chakrobati depreciates equipment on a straight-line basis, taking a full year's depreciation in the year of acquisition. Students are advised that the Present Value of the Lease payments above is equal to $982,323. Therefore, you do not require a present value table (the result has been given to you). Required: 1. Prepare the lease liability amortization schedule for Chakrobati. 2. Prepare the journal entries relating to the leased asset and the lease liability for the first year (20X1 only) for Chakrobati related to (a) recognizing the asset, (b) recording the first payment, (c) recording interest expense for the year and (d) recording depreciation expense. Select from these accounts: Accumulated depreciation-asset under lease Cash Depreciation expense-ROU asset Interest expense Lease liability Rent expense Retained earnings Right-of-use asset