This was all of the information given.

I don't see that in my intermediate accounting text I saved from college," you grumble to a colleague in the accounting division of Dowell Chemical Corporation. "This will take some research." Your comments pertain to the appropriate accounting treatrient of a proposed sublease of warehouses Dowell has used for product storage. Dowell leased the warehouses one year ago on December 31,2024 . The five-year lease agreement called for Dowell to make quarterly lease payments of $2,398,303, payable each December 31, March 31, June 30, and September 30 , with the first payment at the lease's beginning. As a finance lease. Dowell had recorded the right-of-use asset and liability at $40 million, the present value of the lease payments at 8%. Dowell records amortization on a straight-line basis at the end of each fiscal year. Today. Dowell's controller, explained a proposal to sublease the underused warehouses to American Tankers, Incorporated, for the remaining four years of the lease term. American Tankers would be substituted as lessee under the original lease agreement As the new lessee, it would become the primary obligor under the agreement, and Dowell would not be secondarily liable for fulniling the obligations under the lease agreement. "Check on how we would need to account for this and get back to me," the controller had said. Required: 1. On December 31, 2025, what is the balance in Dowell's lease Bability? 2. On December 31, 2025, what is the carrying amount (after accumuloted amortization) of Dowell's leased warehouses? 3. Obtain the relevant authoritative literoture on accounting for derecognition of finance leases by lessees using the FASB's Codification Research System. You might gain access from the FASB website (www fasb. arg). from your school library, or some other source. To determine the appropriate occounting treatment for the proposed sublease, what is the specific seven-digit Codification citation () that Dowell would rely on to determine a. If the proposal will qualify as a termination of a finance lease? b. The appropriate accounting treatment for the sublease? 4. What. if any, Journal entry would Dowell record in connection with the sublease? Complete this question by entering your answers in the tabs below. 1. On December 31, 2025, what is the balance in Dowell's lease liability? N. On: Bocember 31, 2025, whar answer to the nearest whole dollar amount. 2. On December 31, 2025, what is the carrying amount (atter accumulated amortization) of Dowell's ieased warehouses? Note: Round your answer to the nearest whole dollar amount. 3. Obtain the relevant authantative litecature on accounting for derecognition of finance leases by lessees using the FASB's Codification Research Systern. You might gain access from the FASB website (www,fasb.org), from your school library, or some other source: To determine the appropriate accounting treatment for the proposed sublease, what is the specific sevendigit Codification citation (XXXX - XX) that Dowell would rely on to determine: a. If the propbsal will quaily as a termination of a finance lease? b. The approperiate accounting treatment for the sublease