Martinez Industries and Sandhill Inc. enter into an agreement that requires Sandhill Inc. to build three diesel-electricengines to Martinez's specifications. Upon completion of the engines, Martinez has agreed to lease them for a period of 10 years and to assume all costs and risks of ownership. The lease is non-cancelable, becomes effective on January 1, 2020, and requires annual rental payments of $405,443 each January 1, starting January 1, 2020. Martinez's incremental borrowing rate is 8%. The implicit interest rate used by Sandhill and known to Martinez is 7%. The total cost of building the three engines is $2.685,000. The economic life of the engines is estimated to be 10 years, with residual value set at zero. Martinez depreciates similar equipment on a straight-line basis. At the end of the lease, Martinez assumes title to the engines. Collectibility of the lease payments is probable. Show the items and amounts that would be reported on the balance sheet (not notes) at December 31, 2020, for both the lessee and the lessor. MARTINEZ INDUSTRIES Balance Sheet (Partial) December 31, 2020 Asset Non-current Assets Right-of-Use Asset $ TA Current Liability Current Liabilities Lease Liability $ $ 2826464 Long-term Liabilities Lease Liability SANDHILL INC. Balance Sheet (Partial) December 31, 2020 Assets Current Assets Lease Receivable $ Non-current Assets Lease Receivable $