Question 5 Not complete Marked out of 10.00 Lease Accounting. On January 1, Moran Inc. entered into a noncancelable 10-year lease for computer equipment with a fair value of $114 million and requiring annual $15.489 milion year-end lease payments. The company's year-end is December 31. The implicit interest rate is 6%. Required 1. Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded in the financial statements with regard to the lease on January 17 Note: Use Excel and round to the nearest million (i.e. show 128.543 as 129). A Finance lease asset and a finance lease liability will be capitalized on the balance sheet for: $ million. 2. Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded with regard to the lease on December 31 (at the end of the first year)? Note: Round all entries to three decimal points. Use rounded amounts in any further calculations. Item Increase/Decrease Cash $ million Interest expense + $ million Lease obligation $ million Amortization expense + $ million Leased asset $ million 3. What are the total expenses associated with the lease in the second year if it is accounted for as an operating lease? As a finance lease? Note: Round all entries to three decimal points. Expense Item (millions) Operating Lease Finance Lease Operating lease expenses Interest expense $ Amortization expense $ Total $ $ $