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Answer questions 22-23 from the following information. On January 1, Lessee leases equipment with a...

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Accounting

Answer questions 22-23 from the following information.

On January 1, Lessee leases equipment with a useful life of 5 years for a three-year lease term. Payments of $35,000 are due at the beginning of each year. The incremental borrowing rate is 6%. The present value of the payments is $98,000.

  1. What is lease expense for the first year?
  2. What is the amortization of the ROU asset for the first year?

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