Please answer the question and explain how a right-to-use amortization schedule is calculated.

Recording Operating Lease Entries-Lessee On January 1, 2020, Merick Inc. purchased a building for $1.6 million to be leased. The building is expected to have a 45- year life with no salvage value. The building was leased immediately by Kregor Construction for $104,000 a year payable January 1 of each year starting January 1, 2020. The lease term is five years with no renewal or purchase option reasonably expected to be exercised. There are no uncertainties surrounding collection. The implicit rate of the lease is 7% known by Kregor Construction. a. How would Kregor Construction classify the lease? Operating Lease Amortization Schedule of Lease Liability Amortization Schedule of Right-of-Use Asset Journal Entries C. Prepare an amortization schedule of the right-of-use asset. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Straight-Line Interest Amortization of Right-of-Use Date Expense on Liability Right-of-Use Asset Asset Jan. 1, 2020 $ 456,270 Year 2020 $ 104,000 $ 0 x $ 104,000 x 104,000 Year 2022 104,000 Year 2023 104,000 Year 2024 104,000 Total 1 x Year 2021 1 x 1 x 1 x 1 x 1 x 11 x 1 X 1 x 1 x 1 X 11 X 10 X $ 520,000 $ 1 X $ 1 x Chock