Harmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need it for only 4 years even though the compressor's economic life is long enough so that the lease is an operating lease. The firm can lease the compressor for 4 years with $40,000 lease payments at the end of each year. HPB's cost of debt is 14%. Answer the following questions.

1. 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.

   $

2. What is the initial right-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent.

   $

3. What will HPB report as the Year-1 lease expense? Round your answer to the nearest cent. Enter your answer as a positive value.

   $

4. What is the Year-1 imputed interest expense? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value.

   $

5. What lease liability must be reported at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value.

   $

6. What right-of-use asset must be reported at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent.