A lessee has the following amortization schedule for a particular lease: 

The company entered into the lease at the beginning of its fiscal year, on January 1, 2019. Depreciation follows the straight-line method. 

Required: 

Provide the appropriate presentation of this lease in the lessee’s statement of financial position for December 31, 2020, distinguishing amounts that are current from those that are non-current.

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Present value of lease payments Less: payment made at commencement date Lease liability Payment made at commencement date Initial direct costs ROU asset Interest rate implicit in lease as known Date Payment 01/01/2019 12/31/2019 01/01/2020 12/31/2020 01/01/2021 12/31/2021 01/01/2022 $33,594 33,594 33,594 12/31/2022 01/01/2023 33,594 Small differences due to rounding Interest expense $6,984 5,388 3,695 1,902 $150,000 33,594 $116,406 33,594 0 $150,000 6.0% Lease liability $116,406 123,390 89,796 95,184 61,590 65,286 31,692 33,594 0