ABC Lessee Company records an operating lease with an RUA (10-year lease term) & Lease Liability of $200,000. The annual lease payments beginning on 1/1/ equal $23,710 (4% rate). The Lessee would report the following amounts, among other items, related to its 12/31 first period financial statements (all amounts rounded to nearest dollar):

Income Statement: Lease expense $23,710; Balance Sheet: RUA $183,342.

Income Statement: Interest expense $7,052; Balance Sheet: RUA $180,000.

Income Statement: Lease expense $23,710, Balance Sheet: RUA $180,000.

Income Statement: Lease expense $16,658; Balance Sheet: RUA $183,342.