The Harris Company is the lessee on a four-year lease with the following payments at the...

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Finance

The Harris Company is the lessee on a four-year lease with thefollowing payments at the end of each year:
Year 1: $ 11,000
Year 2: $ 16,000
Year 3: $ 21,000
Year 4: $ 26,000

An appropriate discount rate is 7 percentage, yielding a presentvalue of $61,233.

a-1. If the lease is an operating lease, what willbe the initial value of the right-of-use asset?
a-2. If the lease is an operating lease, what willbe the initial value of the lease liability?
a-3. If the lease is an operating lease, what willbe the lease expense shown on the income statement at the end ofyear 1?
a-4. If the lease is an operating lease, what willbe the interest expense shown on the income statement at the end ofyear 1? (Leave no cells blank – be certain to enter “0”wherever required.)
a-5. If the lease is an operating lease, what willbe the amortization expense shown on the income statement at theend of year 1? (Leave no cells blank – be certain to enter“0” wherever required.)
b-1. If the lease is a finance lease, what will bethe initial value of the right-of-use asset?
b-2. If the lease is a finance lease, what will bethe initial value of the lease liability?

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The Harris Company is the lessee on a four-year lease with thefollowing payments at the end of each year:Year 1:$11,000Year 2:$16,000Year 3:$21,000Year 4:$26,000An appropriate discount rate is 7 percentage, yielding a presentvalue of $61,233.a-1. If the lease is an operating lease, what willbe the initial value of the right-of-use asset?a-2. If the lease is an operating lease, what willbe the initial value of the lease liability?a-3. If the lease is an operating lease, what willbe the lease expense shown on the income statement at the end ofyear 1?a-4. If the lease is an operating lease, what willbe the interest expense shown on the income statement at the end ofyear 1? (Leave no cells blank – be certain to enter “0”wherever required.)a-5. If the lease is an operating lease, what willbe the amortization expense shown on the income statement at theend of year 1? (Leave no cells blank – be certain to enter“0” wherever required.)b-1. If the lease is a finance lease, what will bethe initial value of the right-of-use asset?b-2. If the lease is a finance lease, what will bethe initial value of the lease liability?