The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and Indigo Electronics, a lessee, for a computer system.

Commencement date		October 1, 2020
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at October 1, 2020		$272,117
Book value of asset at October 1, 2020		$280,000
Residual value at end of lease term		0
Lessors implicit rate		10	%
Lessees incremental borrowing rate		10	%
Annual lease payment due at the beginning of
each year, beginning with October 1, 2020		$56,800

The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a sales-type lease by the lessor.

Date		Lease Payment/Receipt		Interest (10%) on Unpaid Liability/Receivable		Reduction of Lease Liability/Receivable		Balance of Lease Liability/Receivable
10/01/20								$272,117
10/01/20		$56,800				$56,800		215,317
10/01/21		56,800		$21,532		35,268		180,049
10/01/22		56,800		18,005		38,795		141,254
10/01/23		56,800		14,125		42,675		98,579
10/01/24		56,800		9,858		46,942		51,637
10/01/25		56,800		5,163		51,637		0
		$340,800		$68,683		$272,117

(a)

Partially correct answer icon

Your answer is partially correct.

Assuming the lessees accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessees income statement for the year ending September 30, 2021?

$
$

(2) What items and amounts will appear on the lessees balance sheet at September 30, 2021?

Balance Sheet (Partial)

Current Liabilities:
			$
Long-term Liabilities:
			$
Non-current Assets:
			$

(3) What items and amounts will appear on the lessees income statement for the year ending September 30, 2022?

$
$

(4) What items and amounts will appear on the lessees balance sheet at September 30, 2022?

Balance Sheet (Partial)

Current Liabilities:
			$
Long-term Liabilities:
			$
Non-current Assets:
			$