6 years 6 years The following facts pertain to a noncancelable lease agreement between Alschuler Leasing Company and Blue Electronics, a lessee, for a computer system. Inception date October 1, 2017 Lease term Economic life of leased equipment Fair value of asset at October 1, 2017 $319,783 Residual value at end of lease term -0- Lessor's implicit rate 9% Lessee's incremental borrowing rate 9 % Annual lease payment due at the beginning of each year, beginning with October 1, 2017 $65,400 dy The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs, which amount to $6.100 per year and are to be paid each October 1, beginning October 1, 2017. (This $6,100 is not included in the rental payment of $65,400.) The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a capital lease by the lessee and as a direct financing lease by the lesson Annual Lease Interest (9%) on Unpaid Reduction of Lease Balance of Lease Date Payment/Receipt Liability/Receivable Liability/Receivable Liability/Receivable 10/01/17 $319,783 10/01/17 565,400 565,400 254,383 10/01/18 65,400 $22.894 42,506 211.877 10/01/19 65,400 19.069 46,331 165.546 10/01/20 65,400 14,899 50.501 115,045 10/01/21 65,400 10.354 55,046 59,999 10/01/22 65.400 5.401 59.999 $392,400 $319,783 572.617 Assuming the late's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to o decimal places.. 58.971.) Assuming the lessee's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2018? Interest Expense $ Lease Executory Expense V Depreciation Expense (2) What items and amounts will appear on the lessee's balance sheet at September 30, 2018? Balance Sheet (Partial) September 30, 2018 Current Liabilities Lease Liability $ 3 Interest Payable Long-term Liabilities Lease Liability $ Property. Plant and Equipment Leated Equipment 5 Accumulated Depreciation Equipment 5 (3) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2019? Interest on 5 5 5 mu and amounts will appear on the loc't balance sheet at September 30 2019? (4) What items and amounts will appear on the lessee's balance sheet at September 30, 2019? Balance Sheet (Partial) September 30, 2019 Current Liabilities Lease Liability $ Interest Payable $ Long-term Liabilities $ Lease Liability Property, plant and Equipment Leased Equipment $ $ Accumulated Depreciation Equipment SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Assuming the lessee's accounting period ends on December 31, answer the following questions with respect to this lease agreem (Round ansivers to 0 decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessee's income statement for the year ending December 31, 2017? $ 5 (2) What item and amounts will appear on the lone's balance sheet at December 31, 2017 47 (2) What items and amounts will appear on the lessee's balance sheet at December 31, 2017? Balance Sheet (Partial) Current Liabilities Long-term Liabilities Property. Plant and Equipment Current Assets (3) What time and amounts will appear on the lessee's income statement for the year ending December 31, 2018? 5 (4) What items and amounts will appear on the lessee's balance sheet at December 31, 2018? Balance Sheet (Partial) Current Liabilities Long-term Liabilities Property. Plant and Equipment 5 5 Current Assets