Nace Manufacturing Company leased a piece of nonspecialized equipment for use in its operations from Righteous Leasing on January 1, 2019. The 10 year lease requires lease payments of $ 8,000, beginning on January 1, 2019, and at each December 31 thereafter through 2027. The equipment is estimated to have a 10 year life, is depreciated on the

straight-line basis and will have no residual value at the end of the lease term. Nace's incremental borrowing rate is 5%. Initial direct costs of $ 1, 100 are incurred by the lessee on January 1, 2019. Righteous Leasing acquired the asset just prior to the lease term at a cost of

$ 65, 917. Collection of all lease payments is reasonably assured.

What is the reduction in the lease liability recorded with the first and second lease payments, respectively?