R&R Company leased equipment from First Title Leasing Corp and the following information is relevant: First Title Leasing purchased the equipment for Annual payments beginning Annual payments equal Thereafter payments for the next calendar year will be made on this date each year Lease term Estimated economic life Discount/Interest Rate Year end The lease is non-cancelable First Title Leasing routinely leases this type of equipment $1,000,000 1/1/X1 $150,000 December 31 8 12 8% December 31 1. This lease will be considered a finance lease from the lessee's perspective because it meets which criterion? A. The lease term is for the "major part" of the estimated economic life of the asset B The present value of the lease payments is equal to or greater than "substantially all" of the fair value of the asset C. Both Answers A and B D. This lease will actually be treated as an operating lease for accounting purposes 2. What is the amount the Right of Use Asset account should be debited for on 1/1/X1 when the lease is started? Enter the amount without any symbols as a positive value.