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

Year 1:	ps	14,000
Year 2:	ps	19,000
Year 3:	ps	24,000
Year 4:	ps	29,000

An appropriate discount rate is 7 percent, giving a present value of $71,395.


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? (Do not leave cells blank; be sure to enter "0" where necessary.)

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.)