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 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 Journal entry worksheet