5. Problem 19-05 (Financial Statement Reporting for a Finance Lease) Financial Statement Reporting for a Finance Lease. Reynolds Construction (RC) needs a piece of equipment that costs $120,000. The equipment has an economic life of 3 years and no residual value. The equipment wil not require maintenance because its useful life is so short. RC can borrow the full cost of the equipment at an interest rate of 8% with payments due at the end of the year. Alternatively, R.C Ca lease the equipment for $45,000 with payments due at the end of the year. Assume RC chooses the lease, which is a finance lease for financial reporting purposes. Answer the foliowing questions. (Hilint; See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. What is the initial right-of-use asset? Do not cound intermediate calculations. Round your answer to the nearest cent: s c. What wil R. report as an interest expense at Year 1 ? Round your answer to the nearest cent. Enter your answer as a positive value. 5 d. What will RC report as an amortization expense at Year 17 Do not round intermediate calculabons. Round your answer to the pearest cent. Enter your answer as a positive value. $ 6. What will R. rebort as the lease liability at Year 1 ? Do not raund intermedate calculations. Round your answer to the nearest cent, Enter vour answer as a postive value. s 1. What wil RC report as the right-0f-use asset at Year 17 Do not round intermedlate calcutations. flound your anciwer to the nearest cent. s