On January 1, Year 1, Lessee entered into a 4-year lease of equipment with a 6-year economic life. The lease does not transfer ownership at the end of the lease term or contain a purchase option. Also, the present value of the lease payments is 92% of the fair value of the leased asset. If no residual value is guaranteed, and no initial direct costs are incurred, what is the appropriate subsequent accounting for, or presentation of, the right-of-use asset

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e. g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)