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Please just answer b-5 on the buttom. thank you. The Harris Company is the lessee on a four-year lease with the following payments at the
Please just answer b-5 on the buttom. thank you.
The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: An appropriate discount rate is 7 percentage, yielding a present value of $83,250. a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? a-2. If the lease is an operating lease, what will be the initial value of the lease liability? a-3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1 ? a-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year 1 ? (Leave no cells blank - be certain to enter "0" wherever required.) b-5. If the lease is a finance lease, what will be the amortization expense shown on the income statement at the end of year 1 ? (Round your answer to the nearest dollar amount.) Amortization expenseStep by Step Solution
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