The company also leased computer equipment with the following details. On January 1, 2020, Alexander Mack Adventures Inc. entered into land leases that grant unrestricted access to property in Texas where the company plans to build an RV resort. Lease details follow. Details of lease contract for land \begin{tabular}{|l|r|l|} \hline Least term & 15 & years \\ \hline Annual lease payment & $550,000 & due at each year end \\ \hline Upfront fees & $495,000 & paid in cash \\ \hline Cost of debt capital & 9% & \\ \hline Lessee responsible for property tax and insurance & & \\ \hline \end{tabular} The company also leased computer equipment with the following details. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Given the lease contract facts, determine the classification for each of the two leases (operating or finance). Land lease Computer equipment lease c. What asset will the company add to its balance sheet for each lease? e. What will be the income statement effect of the land lease in 2020 ? f. What will be the income statement effect of the equipment lease in 2020? h. On December 31, 2021, what amount will be on the balance sheet (asset and liability) for each of the leases? The company also leased computer equipment with the following details. On January 1, 2020, Alexander Mack Adventures Inc. entered into land leases that grant unrestricted access to property in Texas where the company plans to build an RV resort. Lease details follow. Details of lease contract for land \begin{tabular}{|l|r|l|} \hline Least term & 15 & years \\ \hline Annual lease payment & $550,000 & due at each year end \\ \hline Upfront fees & $495,000 & paid in cash \\ \hline Cost of debt capital & 9% & \\ \hline Lessee responsible for property tax and insurance & & \\ \hline \end{tabular} The company also leased computer equipment with the following details. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Given the lease contract facts, determine the classification for each of the two leases (operating or finance). Land lease Computer equipment lease c. What asset will the company add to its balance sheet for each lease? e. What will be the income statement effect of the land lease in 2020 ? f. What will be the income statement effect of the equipment lease in 2020? h. On December 31, 2021, what amount will be on the balance sheet (asset and liability) for each of the leases
