ABC Company signed a 3 year lease with annual lease payments of 60,000. The annual lease payment includes $10,000 for insurance and are paid at the beginning of the year. The lease starts January 1^st 2016. The lessor's implicit interest rate is 2% and the lessee's incremental borrowing rate is 3%. 

Provide the journal entries for 

1. The initial lease liability?

2. Lease payments and expense for each year of the 3 years?