Problem 9-104A (Algorithmic) Finance and Operating Leases Trimurti Company has decided to lease its new office building. The following information is available for the lease: Length of lease Payments Payments $100.000 per year 15 years Economic life of building 16 years Appropriate interest rate 8.69 Cost of building if purchased $675,000 *The first payment is due at the end of the first year of the lease, Required: 1. Why is this a finance lease rather than an operating lease if the entity reports using IFRS? This is a finance lease because the term of the lease is most of the economic life of the property Feedback Check My Work 2. Regardless of your answer to the preceding question, assume that this is a finance lease and that the present value of the lease payments is $799,500. Record the liability and corresponding asset for this acquisition (Record finance lease) Feedback Check My Work 3. Record the interest expense on the finance lease at the end of the first year. Also assume no residual value and a 15-year lease for the building. Record the first year's straight-ine depreciation of the cost of the leased asset. Round your answers to the nearest dollar. For a compound joumal entry, for those boxes in which no entry is required, leave the box blank (Record finance lease payment) (Record depreciation expense)