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RECOMMENDED!!On January 1, 2019, Coleus Corporation entered

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On January 1, 2019, Coleus Corporation entered into a ten-year lease agreement to be accounted for as a finance lease under ASC 842. The following summarizes the agreement:Payments of $30,000 are due at the beginning of each year; the first payment was made on January 1, 2019.The leased asset has an estimated useful life of 15 years.The implicit interest rate in the lease is known by Coleus to be 10%.Coleus’s incremental borrowing rate is 12%.Coleus uses the straight-line depreciation method.The asset’s estimated salvage value is $50,000 after 10 years and is $15,000 after 15 years.Required:1. Determine the interest expense associated with the lease for the year ended December 31, 2019.2. Determine the amortization expense for the year ended December 31, 2019.

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