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: $19,500 $24,500 $29,500 $ 34,500 An appropriate discount rate is 7 percentage, yielding a present value of $90,024. a-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 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 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? Lease expense 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 "O" wherever required.) Interest expense 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.) Amortization expense 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 right-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 1? (Leave no cells blank - be certain to enter "O" 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 1? (Round your answer to the nearest dollar amount.) Amortization expense 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: $19,500 $24,500 $29,500 $ 34,500 An appropriate discount rate is 7 percentage, yielding a present value of $90,024. a-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 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 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? Lease expense 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 "O" wherever required.) Interest expense 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.) Amortization expense 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 right-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 1? (Leave no cells blank - be certain to enter "O" 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 1? (Round your answer to the nearest dollar amount.) Amortization expense
