The above information should read:The information below relates to a leasing arrangement between Simmonds Leasing Company and Telsan Company, a lessee.

Inception date January 1, 2020 Lease term 6 years Annual lease payment due at the beginning of each year, beginning with January 1, 2020 $150,000 $760,000 Fair value of asset at January 1, 2020 Economic life of leased equipment 7 years Residual value of equipment at end of lease term, guaranteed by the lessee $65,500 10% Lessor's implicit rate Lessee's incremental borrowing rate 12% January 1, 2020 The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $65,500. The lessee uses the straight-line depreciation method for all equipment Instructions (i) What is the lease liability for Telsan Company? (4 marks) (ii) Record the lease on Telsan Company's books at the date of inception. (4 marks) munidenciation en Telsan Company's books