New lease standards become effective January 1, 2019. These standards affect the accounting for operating leases. Assume Swift Company acquires a machine with a fair value of $100,000 on January 1 of Year 1 by signing a five-year lease. Swift must make payments of $16,275 each December 31. The appropriate interest rate on the lease is 10%. Assume that this lease meets the criteria for an operating lease. Compute the following amounts under BOTH:

(a) the lease standards in effect before January 1, 2019,

(b) the new lease standards (an amortization table will be useful in solving this problem)

For the following:

• The leased asset at December 31 of each of the first three years.

• The lease liability at December 31 of each of the first three years.

• Rent expense for each of the first three years.

• Interest expense for each of the first three years.

• Depreciation expense for each of the first three years.