Problem 1 A lease agreement that qualifies as a finance lease calls for annual lease payments of $30, 500 over a six-year lease term with the first payment on January 1, the beginning of the lease. The interest rate is 4.5%. If the lessee's fiscal year is the calendar year: Requirements: Show your answers a. What would be the amount of the lease liability that the lessee would report on its balance sheet at the end of the year, December 31? b. What would be the interest payable?

A lease agreement that qualifies as a finance lease calls for annual lease payments of $30,500 over a six-year lease term with the first payment on January 1 , the beginning of the lease. The interest rate is 4.5%. If the lessee's fiscal year is the calendar year: Requirements: Show your answers a. What would be the amount of the lease liability that the lessee would report on its balance sheet at the end of the year, December 31 ? b. What would be the interest payable