Question
On January 1, 2021, Miller Company leased equipment from Alpha Louse Corp. Alphe Lease Corp purchased the equipment at a cost of $150.000. The agreement
On January 1, 2021, Miller Company leased equipment from Alpha Louse Corp. Alphe Lease Corp purchased the equipment at a cost of $150.000. The agreement specified three payments of $50,000 beginning January 1, 2021, the beginning of the lense, and on each December 31 thereafter through 2022. The useful life of the equipment is estimated to be five years wor's implicit rate was 5%. The present value of those three payments at a discount rate of % is $142,971, On January 1, 2022 (after one year and two payments), Miller and Alpha agreed to extend the lease term by two years and lease payments stay to be $50,000. The market rate of interest that the was 5%. The present value of these remaining three payments at a discount rate of 5% is $136,163, Answer the following questions: (Do not add dollar sign, do not add comma by yourself to your amount, round the answer to the whole number) 1. What is the amount related to the lease that Miller will report in its income statement for the year ended December 31, 2021 dgnore income taxes) 2. What is the balance of lease liability that Miller will report in its balance sheet at December 31, 2021 3. What is the balance of right of use asset that Miller will report in its balance sheet at December 31, 2021 4 What is the amount related to the bonds that Miller will report in its statement of cash flows for the year ended December 31, 2021 Indicate the category in which to classify cashflows ____<(amount),_____activities,____activities at,_____amount 5 What is the impact of lease contract on Alpha 2022 net income? 6. (bonus question additional 10 points) What is the amount of amortization expense reported on Miller income statement for the year ended December 31, 2022
per chegg guidelines this is all one question. please show all your work
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