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: $20,000 $25,000 $30,000 $35,000 An appropriate discount rate is 7 percentage, yielding a present value of $91,718. 8-1. If the lease is an operating lease, what will be the initial value of the right of use asset? Initial value of the right-of-use asset $ 91,718 a-2. If the lease is an operating lease, what will be the initial value of the lease liability? Initial value of the lease liability $ 91,718 --3, if the base is an operating loose what will be the base expense hown on the income statement at the end of your 27 000 0-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year ? Leave no cells blank - be certain to enter "o wherever required.) Inese 3-5. If the lease is an operating loose who will be the amortization expenseshown on the income statement of the end of year (Leave no cells blank-be certain to enter "o" wherever required) Amortion opens --3, if the base is an operating loose what will be the base expense hown on the income statement at the end of your 27 000 0-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year ? Leave no cells blank - be certain to enter "o wherever required.) Inese 3-5. If the lease is an operating loose who will be the amortization expenseshown on the income statement of the end of year (Leave no cells blank-be certain to enter "o" wherever required) Amortion opens b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset? Initial value of the night of use asset b-2. If the lease is a finance lease, what will be the initial value of the lease liability? 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 17 (Leave no cells blankbe certain to enter "0" wherever required.) Lease expense 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? (Round your answer to the nearest dollar amount.) Interest expense 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 17 (Round your answer to the nearest dollar amount.) Amortization expense
