Affordable Company leases a machine for its own use for four years with annual payments of $10,000. At the end of the lease, which is also the end of the machine’s useful life, Affordable will return the machine to the lessor. The interest rate implicit in the lease is 5%. 

Assuming that the right-of-use asset is amortized on a straight-line basis over the term of the lease, calculate the impact of the lease on Affordable’s financial statements for each of the four years.