On January 1, 2020, AB signed a Four-year non-cancelable lease with XZ Company. The lease calls for four payments of $34,560 to be made at the end of each year. AB cannot renew the lease, there is no bargain purchase option, and ownership of the leased asset reverts to XZ at the lease end. The leased asset has an expected useful life of four years, and AB. uses straight-line depreciation for financial reporting purposes. Its incremental borrowing rate is 11%.AB uses a calendar year for financial reporting purposes. Both companies use ASC 840 to account for leases.

Required:

1. Calculate the lease value. ( 3 marks)
2. Identify the type of lease. Justify your answer. ( 3 marks)
3. create a amortization schedule for the lease liability ( 10 marks)
4. How much would be total Lease Liability as on 31.12.2022? ( 3 marks)
5. How much would be current portion of liability and how much would be non current portion of the liability as on 31.12.2022? ( 6 marks)