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

Year 1:	$ 13,000
Year 2:	$ 18,000
Year 3:	$ 23,000
Year 4:	$ 28,000

An appropriate discount rate is 7 percentage, yielding a present value of $68,007.

a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset?

a-2. If the lease is an operating lease, what will be the initial value of the lease liability?

a-3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1?

a-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year 1?

Note: Leave no cells blank be certain to enter 0 wherever required.

a-5. If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year 1?

Note: Leave no cells blank be certain to enter 0 wherever required.

b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset?

b-2. If the lease is a finance lease, what will be the 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 1?

Note: Leave no cells blank be certain to enter 0 wherever required.

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?

Note: Round your answer to the nearest dollar amount.

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 1?

Note: Round your answer to the nearest dollar amount.