Core Co. leased a piece of manufacturing equipment from E-So Co. with the following term????:

Annual lease payment. . . . . . . . . . . . . . $1,100,000

Term of lease:. . . . . . . . . . . . . . . . . . . . .        5 years

Interest rate; . . . . . . . . . . . . . . . . . . . . . .          4.0%

Lease commences on January 1, 2020

Payments are made on December 31 of each year in the lease term.

a. Compute the value of the right-of-use asset and the lease liability on the date the lease commence????.

b. Prepare a lease liability amortization schedule and right-of-use asset amortization schedule for the lessee.

c. Record the journal entries for Core Co. for January 1, 2020-December 31, 2021, if the lease is classified as a finance lease.

d. Record the journal entries for Core Co. for January 1, 2020-December 31, 2021. if the lease is classified as an operating lease.

e. Explain the differences in the operating lease and finance lease treatments for the financial accounting statements including showing the right-of-use asset value over the term of the lease.