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The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: Year 2: Year

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The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: Year 2: Year 3: Year 4: $17,500 $22,500 $27,500 $32,500 An appropriate discount rate is 7 percentage, yielding a present value of $83,250. 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 7. (Round your answer to the nearest dollar amount.) Interest expense 7.000 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 I (Round your answer to the nearest dollar amount.) $ Amortation expense 25.000

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