YER 1 Check my work 5 Watson Coentered into a lease arrangement for a truck on 1 April 20x2 that had the following terms The lease payments are $12,500 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 $3,600 per year Based on an allocation of the lease payment on relative stand alone prices, the base and non-tease components (maintenance) are Expected amounts to be paid under the residual value guarantee la $15,000 at the end of the first lease term and $5.000 at the end The leased asset has a useful le of ten years and a fair value of $70,000. The interest rate implicit in the lease la 7%. PVO 31. PVA ot 31. and PVAD of 1) use appropriate factors) from the tables provided) Required: 1a Calculate the right of use asset (Round the intermediate and final answer to the nearest whole dollar amount.) 1-b. Record the initial journal entry Of 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