The following facts are for a non-cancellable lease agreement between Hebert Corporation and Russell Corporation, a lessee:

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Hebert use IFRS 16.
Instructions
Answer the following, rounding all numbers to the nearest cent.
(a) Calculate the amount of the right-of-use asset and lease liability.
(b) Discuss the nature of this lease to Russell Corporation, the lessee.
(c) Discuss the nature of this lease to Hebert Corporation, the lessor.
(d) Prepare a lease amortization schedule for the lease obligation using a computer spreadsheet for Russell Corporation for the five-year lease term.
(e) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. Russell's annual accounting period ends on December 31, and Russell does not use reversing entries.

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nception date Annual lease payment due at the beginning of each year, starting July 1, 2017 Purchase option price at end of lease term reasonably certain to be exercised by Russell Lease term Economic life of leased equipment Lessor's cost Fair value of asset at July 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate July 1, 2017 $20,066.26 $4,500.00 5 years 10 years $60,000.00 $88,000.00 9% 9%