Lansing West leased computer hardware from Franklin Leasing on July 31, 2018. Franklin manufactured the equipment for a cost of $50,000.

Lease term: 1 year 3 months (5 quarters)

Quarterly rental payments: $7,500 at the beginning of each period

Economic Life of Asset: 2 years

Fair value of asset: $56,040

Implicit interest rate: 8%

(also lessee's incremental borrowing rate)

Amortization is recorded at the end of each fiscal year (December 31).

What would the amount(s) related to the lease Lansing West would report in its balance sheet at 12/31/18?