Problem $16-21($Algo$)$ Financial statement effects of leases $[$LO $16-4]$

The Harris Company is the lessee on a four$-$year lease with the following payments at the end of each year:

Year $1$: $ $20,000$

Year $2$: $ $25,000$

Year $3$: $ $30,000$

Year $4$: $ $35,000$

An appropriate discount rate is $7$ percentage, yielding a present value of $$91,718.$

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 $1?$

a$-4.$ If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year $1?$

Note: Leave no cells blank $$ be certain to enter $0$ wherever required.

a$-5.$ If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year $1?$

Note: Leave no cells blank $$ be certain to enter $0$ wherever required.

b$-1.$ If the lease is a finance lease, what will be the initial value of the right$-$of$-$use asset?

b$-2.$ If the lease is a finance lease, what will be the initial value of the lease liability?

b$-3.$ If the lease is a finance lease, what will be the lease expense shown on the income statement at the end of year $1?$

Note: Leave no cells blank $$ be certain to enter $0$ wherever required.

b$-4.$ If the lease is a finance lease, what will be the interest expense shown on the income statement at the end of year $1?$

Note: Round your answer to the nearest dollar amount.

b$-5.$ If the lease is a finance lease, what will be the amortization expense shown on the income statement at the end of year $1?$

Note: Round your answer to the nearest dollar amount.