Required

a$.$ How would Lessee Inc. classify the lease?

b$.$ What balances $($account titles and amounts$)$ appear on Lessee Inc.$\text{'}$s balance sheet on December $31$ of Year $1$ related to the lease?

Note: Round your answers to the nearest whole dollar.

c$.$ What balances $($account titles and amounts$)$ appear on Lessee Inc.$\text{'}$s income statement for Year $1$ related to the lease?

Note: Round your answers to the nearest whole dollar.

Income Statement