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Answer these two additional questions about this problem:

Record lease expense for the year 2022 on December 31, 2022.

Record lease expense for the year 2023 on December 31, 2023

Part #6 [Operating lease] 15 points Renew ('0. uses leasing as a secondary means of selling its products. The company contracted with Green Corporation to lease a machine with an economic life of 12 years to be used by Green Corporation in its operations. The fair value of the asset at the inception of the lease on January 1 of Year 2021 was $400,000; it cost Renew Co. $360,000 and is carried as equipment at that value. Payments of $44,925 are to be made by Green Corporation on January 1 for each of the eight years of the lease, with the rst payment due immediately. Renew Co's implicit interest rate is 6% per year, which is not known by Green Corporation. Green C orporation's incremental borrowing rate is 7%. Renew Co. estimates the residual value of the underlying asset to be $166,217 at the end of the lease term. The residual value is not guaranteed by Green Corporation. Renew Co. will depreciate the equipment on a straight-line basis (assuming no salvage value). Question #1 [5 points] Record the operating lease contract and first lease payment on January 1, 2021. N 8 N I 7 I I PMT 44925 PMT FV 0 EV CPT PVZ $287,039 ROU Asset 287,039 Lease Payable 287,039 Lease Payable 44,925 Cash 44,925 Question #2 [7 points] Record lease expense for the year 2021 on December 31, 2021. Lease Expense 44,925 Lease Payable 16,948 ROU Asset (=PLUG) 27,977 It is ($282,039 - $44,925) * 7% = $16,948 Question #3 [3 points] List the dollar amount of ROU Asset and Lease Payable as of December 31 of year 2021 and Lease Expense for the year 2021. ROU Asset = $ ROU Asset Lease Payable 287,039 27,977 44,925 287,039 259,062 16,948 Lease Expense 259,062 Lease Payable = $ 443925 Lease Expense = $