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Answer questions 24-25 from the following information. On January 1, Lessee leases equipment with a...

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Accounting

Answer questions 24-25 from the following information.

On January 1, Lessee leases equipment with a useful life of 5 years for a three-year lease term. The incremental borrowing rate is 2%. The payments of $50,000 are due at the beginning of each year. The present value of these payments is $147,000. In addition, there is a bargain purchase option of $3,000, the present value of which is $2,826.

  1. What is the ROU asset on January 1?
  2. What is the amortization expense at the end of the year?

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