A lease agreement that qualifies as a finance lease calls for annual lease payments of $$26,269$ over a six$-$year lease term $($also the asset's useful life$),$ with the first payment on January $1,$ the beginning of the lease. The interest rate is $5\%.$ The lessee's fiscal year is the calendar year.

Required:

a$.$ What is the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year.

b$.$ Record the transaction to show the amount of interest payable.