Watson Co. entered into a lease arrangement for a truck on 1 April 20x2 that had the following terms: The lease payments are $14,000 per year, payable each 1 April for four years. The lease may be renewed at the option of the lessor for a further five years for $4,100 per year. Based on an allocation of the lease payment on relative stand-alone prices, the lease and non-lease components (maintenance) are $12,700 and $1,300 respectively. Expected amounts to be paid under the residual value guarantee is $13,600 at the end of the first lease term and $4,500 at the end of the second lease term. The leased asset has a useful life of ten years and a fair value of $66,300. The interest rate implicit in the lease is 9% (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Calculate the right-of-use asset. (Round the intermediate and final answer to the nearest whole dollar amount.) Right-of-use asset $ 59,234 1-b. Record the initial journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round Intermediate calculations and final answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit A 1 Right-of-use asset Maintenance expense Lease liability 70,634 1,300 59,234 12,700 Cash 2. Prepare a lease liability amortization table for only the first four payments. (Round the intermediate and final answers to the nearest whole dollar amount.) Amortization Table Payment Period Opening Balance Cash Interest Decrease in Balance Ending Balance Payment 20X2 $ of $ 59,234 $ 46,534 20X3 4,188 3,422 12,700 $ 12,700 12,700 12,700 12,700 $ 8,512 9,278 10,113 46,534 38,022 28,744 18,631 20X4 38,022 28,744 20X5 2,587 3. List the items that would appear in the lessee's SCI for the year ended 31 December 20X3. (Round the intermediate and final answers to the nearest whole dollar amount.) 6,088 Statement of comprehensive income Depreciation expense $ Maintenance expense $ Interest expense $ 1,300 3,141 4. What is the amount of the total lease liability on the balance sheet on 31 December 20X3? Split this amount into the current and long-term portions. (Round the intermediate and final answers to the nearest whole dollar amount.) Statement of Financial Position 31 December 20X3 Lease liability Current portion $ 15,841 Long-term portion 46,534