Skip to main contentChapter 16 HomeworkAnswerSavedHelp opens in a new windowSave & Exit Submit Item10 1 points eBookPrintReferences Check my work Check My Work button is now enabledItem 10Item 10 1 points The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 16,500 Year 2: $ 21,500 Year 3: $ 26,500 Year 4: $ 31,500 An appropriate discount rate is 7 percentage, yielding a present value of $79,863. 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? (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? (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? (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? (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? (Round your answer to the nearest dollar amount.)