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Financial Statement Reporting for an Operating Lease

Harmeling Paint Ball $($HPB$)$ Corporation needs a new air compressor that costs $$80,000.$ HPB will need it for only $4$ years even though the compressor's economic life is long enough so that the lease is an operating lease. The firm can lease the compressor for $4$ years with $$35,000$ lease payments at the end of each year. HPB$\text{'}$s cost of debt is $12\%.$ Answer the following questions. $($Hint: See Table $19-1.)$

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 your answer as a positive value.

$

What is the initial right$-$of$-$use asset? Do not round intermediate calculations. Round your answer to the nearest cent.

$

What will HPB report as the Year$-1$ lease expense? Round your answer to the nearest cent. Enter your answer as a positive value.

$

What is the Year$-1$ imputed interest expense? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value.

$

What lease liability must be reported at Year $1?$ Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value.

$

What right$-$of$-$use asset must be reported at Year $1?$ Do not round intermediate calculations. Round your answer to the nearest cent.

$

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