Blossom Company leases a building to Kingbird, Inc. on January 1, 2020. The following facts pertain to the lease agreement.

1.		The lease term is 4 years, with equal annual rental payments of $5,281 at the beginning of each year.
2.		Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature.
3.		The building has a fair value of $22,000, a book value to Blossom of $15,000, and a useful life of 5 years.
4.		At the end of the lease term, Blossom and Kingbird expect there to be an unguaranteed residual value of $3,750.
5.		Blossom wants to earn a return of 7% on the lease, and collectibility of the payments is probable. This rate is known by Kingbird.

Assume that Kingbird was unaware of the implicit rate used in the lease by Blossom and has an incremental borrowing rate of 8%.

How would Blossom initially measure the lease receivable, and how would Kingbird initially measure the lease liability and right-of-use asset?