On January 1, 2017, Yuber Company signed a seven-year noncancelable lease for a limousine. The terms of the lease called for Yuber to make annual payments of $46,875 at the beginning of each year for seven years with title passing to Yuber at the end of this period. The limousine has an estimated useful life of 9 years and no salvage value. Yuber uses the straight-line method of depreciation for all of its fixed assets. Yuber accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $292,500 at an effective interest rate of 4%.

With respect to this capitalized lease:

What should Yuber record as interest and depreciation expense for year 2017?

What should Yuber record as interest and depreciation expense for year 2018?

What should be the balance of the total lease obligation under capital leases on Yuber's books in January of 2019 afterthe annual lease payment was made? [4 points]?