I need help with the attached problem. Here is the task with the problem:

"Prepare a comparative schedule for the Operating Lease treatment and the Capital Lease treatment. Show total lease-related expense (and the components) that would be recognized under each treatment on each year's annual Income Statement throughout the lease term. Also include the amount of Total Lease Liability (sum of both Current and Noncurrent liabilities) that will appear on the Balance Sheet at the end of each year during the lease term."

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SITUATION No. 1 (Lease): Your employer is considering leasing a machine, beginning January 1, 2016. The lease agreement, which will run for twelve (12) years, will require monthly payments. Your employer has negotiated a variable payment plan. For the first five years, the monthly payment will be $85,140 at the beginning of each month. For the last seven years, the monthly payment will be $55,140 [insert the last three digits of your student number] at the beginning of each month. The first payment is due January 1, 2016. At the end of the lease term your employer expects the machine to have an $800,000 residual value, which will be guaranteed by your employer. You do not know the lessor's interest rate, and your employer's incremental annual borrowing rate is 11.4% Although the specific required accounting treatment is determined by GAAP, your employer wishes to know the impact of alternative treatments of this lease agreement. Prepare a comparative schedule for the Operating Lease treatment and the Capital Lease treatment. Show total lease-related expense (and the components) that would be recognized under each treatment on each year's annual Income Statement throughout the lease term. Also include the amount of Total Lease Liability (sum of both Current and Noncurrent liabilities) that will appear on the Balance Sheet at the end of each year during the lease term. For preparing this analysis assume that at the end of the lease term, but not before, you will learn that the residual value of the leased asset is only $700,000. Note that this difference will not become known until the end of the lease term