On January 1, Year1 Garret Trucking Company leased a semitractor and trailer for five years. Annual payments of $28013 are to be made every December 31, beginning December 31, Year1. Interest expense is based on a rate of 6%. The present value of thelease payments is $118000 and has been determined to be greater than 90% of the fair market value of the asset on January 1, Year1. Garret has computed the following amortization table for the lease liability:

Date	Lease Payment	Interest Expense	Reduction of Obligation	Lease Obligation
1/01/Yr1				118000
12/31/Yr1	28013	7080	20933	97067
12/31/Yr2	28013	5824	22189	74878
12/31/Yr3	28013	4493	23520	51358
12/31/Yr4	28013	3081	24932	26426
12/31/Yr5	28013	1587	26426	0

1. What will Garrett report as a Right-of-use asset at the inception of the lease?

2. What is total expense reported with respect to this lease for Year1 (include interest expense and amortization expense for the right-of-use asset.)

3. What is total expense reported with respect to this lease for Year2 (include interest expense and amortization expense for the right-of-use asset.)

4. Complete the following sections of the company's balance sheet at December 31, Yr3. Assets: Right-of-use asset

Liabilities: Lease liability: