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Watson Ca entered into olesse orrsngement for s truck on $1$ Aprl $202$ thst had the follawing term:$-$

The lesse psyments see $$12,500$ per year, psysble esch $1$ Aprl for four years. The lesse moy be renewed st the option of the lessor for s further five yesrs for $$3,600$ per year.

Bor sturther five years for $$3,600$ per year $$11,300$ snd $$1,200$ respectively.

Expected amounts to be pold under the residusl vslue qusrantse are $$15,000$ if the lessee ends the lesse ot the end of the first lesse term, ond $$5,000$ if they end the lesse ot the end of the second lesse term.

$($PV af $$1,$ PVA af $$1,$ snd PVAD af $$1.($Use oppropriste factor$($s$)$ from the tables prowided.$)$

Requlred: its. Calculate the right$-$of$-$use asset. $($Round the Intermedlate and finsl answer to the nearest whole dollor omount.$)$

$\backslash$table$[[$Right$-$ot$-$ise asest,$]]$

ib$.$ Record the intial journsl entry. $($If no entry Is required for a transoctionievent, select $"$No journal entry requlred" In the first occount field. Round Intermedlate calculations and finsl answers to the nearest whale dollar amount.$)$

$2$ Prepare a lease liability amortizstion table for only the first four payments. $($Round the Intermedlate and finsl answers to the

List the items that would sppesr in the lesses's SCI for the yesr ended $31$ December $20$X$3.($Round the Intermediate and finel$)$

gistantont ocript

What is the amount of the totsl lesse lability on the bsisnce sheet on $31$ December $203?$ Split this amount into the current and langterm portions. $($Abound the Intermediste ond final snswers to the nearest whole dollar smount.$)$

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