On January 1, 2017, Cage Company contracts to lease equipment for 5 years, agreeing to make a payment of $120,987 at the beginning of each year, starting January 1, 2017. The leased equipment is to be capitalized at $550,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Cage's incremental borrowing rate is 6%, and the implicit rate in the lease is 5%, which is known by Cage. Title to the equipment transfers to Cage at the end of the lease. The asset has an estimated useful life of 5 years and no residual value.

What amounts will appear on the lessee's December 31, 2017 balance sheet relative to the lease contract? (Hint: Both assets and liabilities have been affected. Make sure to break down the liabilities into their current vs. noncurrent portions.)

How would a partial balance sheet look like, showing the amounts on the lessee's December 31, 2017? What would it include?

Thanks in advance for your help.