Question: The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 14,000 Year

The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 14,000 Year 2: $ 19,000 Year 3: $ 24,000 Year 4: $ 29,000 An appropriate discount rate is 7 percentage, yielding a present value of $71,395. a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? a-2. If the lease is an operating lease, what will be the initial value of the lease liability? a-3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1

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