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

Year 1: $ 19,000 Year 2: $ 24,000 Year 3: $ 29,000 Year 4: $ 34,000

An appropriate discount rate is 7 percentage, yielding a present value of $88,331.

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?