(a) Initial lease liability:

\[
25{,}000 \times \left(\frac{1-(1.07)^{-5}}{0.07}\right)
= 25{,}000 \times 4.100197436
= \$102{,}504.94
\]

(b) Initial right-of-use asset:

\[
\$102{,}504.94
\]

Accounting standard: **AASB 16 Leases**.