ynolds Construction (RC) needs a piece of equipment that costs $165,000. The equipment has an economic life of 3 years and no residual value. Th uipment will not require maintenance because its useful life is so short. RC can borrow the full cost of the equipment at an interest rate of 10% with yments due at the end of the year. Alternatively, RC can lease the equipment for $60,000 with payments due at the end of the year. Assume RC ooses the lease, which is a finance lease for financial reporting purposes. Answer the following questions. (Hint: See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter inur answer as a positive value. $ b. What is the initial rinht-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What will RC renort ac an interest expense at Year 1 ? Round your answer to the nearest cent. Enter your answer as a positive value. $ d. What will RC report as an amortization expense at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as 7 positive value. $ e. What will RC report as the lease liability at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ f. What will RC rebort ac the right-of-use asset at Year 1 ? Do not round intermediate calculations. Round your answer to the nearest cent. $ ynolds Construction (RC) needs a piece of equipment that costs $165,000. The equipment has an economic life of 3 years and no residual value. Th uipment will not require maintenance because its useful life is so short. RC can borrow the full cost of the equipment at an interest rate of 10% with yments due at the end of the year. Alternatively, RC can lease the equipment for $60,000 with payments due at the end of the year. Assume RC ooses the lease, which is a finance lease for financial reporting purposes. Answer the following questions. (Hint: See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter inur answer as a positive value. $ b. What is the initial rinht-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What will RC renort ac an interest expense at Year 1 ? Round your answer to the nearest cent. Enter your answer as a positive value. $ d. What will RC report as an amortization expense at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as 7 positive value. $ e. What will RC report as the lease liability at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ f. What will RC rebort ac the right-of-use asset at Year 1 ? Do not round intermediate calculations. Round your answer to the nearest cent. $