10 minutes A lessee records an operating lease with an RUA (10-year lease term) & Lease Liability of $500,000. The annual lease payments beginning on 1/1/ equal $64,089 (6% rate). The Lessee would report the following amounts, among other items, related to its first period financial statements (all amounts rounded to nearest dollar): O Income Statement: Lease expense $64,089: Balance Sheet: RUA $462,066. Income Statement: Lease expense $64,089, Balance Sheet: RUA $450,000. O Income Statement: Lease expense $64,089: Balance Sheet: RUA $-0. O Income Statement: Interest expense $26,155; Balance Sheet: RUA $450,000.