Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $158,400 on January 1. Pier10 Inc. was aware of the lessors implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $34,844 was due upon commencement of the lease.

Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31.