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Part 2: At January 1,2024, Norway Company leased a machine from Yong Manufacturer....

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Accounting

Part 2: At January 1,2024, Norway Company leased a machine from Yong Manufacturer. The following information pertains to the lease:
Lease term
3 years
Annual lease payments beginning January 1,2024 and at each
December 31 thereafter through 2025
$80,000
Present value of lease payments at 6%
$226,671
Yong Manufacturer's implicit rate (known by Norway)
6%
On December 31,2026, the machine reverts back to Yong. Both companies use straight-line depreciation/amortization. Assume useful life of machine is 5 years. Fair value of equipment is $360,000. The lease is classified as an operating lease:
What is the balance of right-of-use asset that Norway will report in its balance sheet at December 31,2024?
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