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Answer:
Solution B-1:
Initial value of the right-of-use asset = Present value of lease payments = $84,943
Solution B-2:
Initial value of the lease liability = Present value of lease payments =$84,943
Solution B-3:
Lease Expense = $0
Solution B-4:
Interest Expense = $84,943 * 0.07 = $5946
Solution B-5:
Amortization Expense = $84,943 / 4 = $21,235.8
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