PROBLEM I On January 1, 281?, Gold CGIDPELHY entered into a 5~year lease of a oor of a building with the following terms: Annual rental tor the rst year two years payable at the end of each year 288,808 Annual rental tor the next three years payable at the end of each year 308,808 Initial direct cost paid by lessee 108.808 Leasehold improvement 258,808 Estimated cost of restoration required by contract 58,808 Useful life of building 28 years Implicit interest rate 8% PV of an ordinary annuity of 1 at 8% for two periods 1.?83 PV of an ordinary annuity of 1 at 8% for three periods 25?? PV of 1 at 8% for two periods 8.85? 1. What is the initial lease liabiiity'? 2. What is the cost of the right of use asset? 3. What is the depreciation for 281?? 4. What is the interest expense for 281