Analyzing, Interpreting, and Capitalizing Operating Leases - Lease term: 15 years. - Upfront fees: $450,000 paid in cash. - Annual lease payment: $550,000 due at each year-end. - Lessee responsible for property tax and insurance. The company also leased computer equipment with the following details. - Lease term: 4 years. - Upfront fees: $5,000. - Annual lease payments: $27,163. - Lessee has option to purchase equipment for $1 at end of lease. Required Note: For the following questions, round your answers to the nearest whole dollar; use rounded amounts for further calculations. a. Given the lease contract facts, determine the classification for each of the two leases (operating or finance). Land lease: Computer equipment lease: b. Determine the amount of the lease liability that Alexander Mack will add to its balance sheet at the inception of each lease. The company has a 9\% cost of debt capital. Land lease: $ Computer equipment lease: \$ c. What asset will the company add to its balance sheet for each lease? d. For each lease, prepare an amortization schedule that shows the interest and principal portions of each lease payment. Note: Adjust the final year for any rounding differences. e. What will be the income statement effect of the land lease in 2020? \$ of expense f. What will be the income statement effect of the equipment lease in 2020 ? $ of expense g. For fiscal 2020, what additional disclosure would Alexander Mack make in its footnotes pertaining to the remaining land lease payments? g. For fiscal 2020, what additional disclosure would Alexander Mack make in its footnotes pertaining to the remaining land lease payments? h. On December 31, 2021, what amount will be on the balance sheet (asset and liability) for each of the leases