Q25. Harris Company

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 ? Note: Leave no cells blank - be certain to enter " 0 " wherever required. a-5. If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year 1 ? Note: Leave no cells blank - be certain to enter " 0 " wherever required. b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset? b-2. If the lease is a finance lease, what will be the initial value of the lease liability? b-3. If the lease is a finance lease, what will be the lease expense shown on the income statement at the end of year 1 ? Note: Leave no cells blank - be certain to enter " 0 " wherever required. b-4. If the lease is a finance lease, what will be the interest expense shown on the income statement at the end of year 1 ? Note: Round your answer to the nearest dollar amount. 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 ? Note: Round your answer to the nearest dollar amount