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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:$15,500 Year 2:$20,500 Year

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

Year 1:$15,500

Year 2:$20,500

Year 3:$25,500

Year 4:$30,500

An appropriate discount rate is 7 percentage, yielding a present value of $76,475.

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?(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?(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?(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?(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?(Round your answer to the nearest dollar amount.)

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