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

Year 1 : $11,000.00

Year 2 : $16,000.00

Year 3 : $21,000.00

Year 4 : $26,000.00

An appropriate discount rate is 7 percentage, yielding a present value of $61,233.

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?

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?

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?

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?

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?