.md

```
(a) Initial lease liability: $102,504.94  
(b) Initial right-of-use asset: $102,504.94  
Standard: AASB 16 Leases

Calculation:
PV = 25,000 × [(1 – (1.07)^‑5) / 0.07]  
    = 25,000 × [(1 – 0.71298618) / 0.07]  
    = 25,000 × [0.28701382 / 0.07]  
    = 25,000 × 4.10019744  
    = $102,504.94 (rounded)
```