The following facts pertain to a noncancelable lease agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Commencement date Lease term Economic life of leased equipment Fair value of asset at October 1, 2017 Book value of asset at October 1, 2017 Residual value at end of lease term Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, October 1, 2017 6 years 6 years $ 313,043 $ 280,000 0 0 beginning with October 1, 2017 $ 62,700 The collectability 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 Interest (8%) Reduction of Balance of Lease on Unpaid Lease Payment / Liability Liability Liability Lease Date ReceiptReceivable Receivable Receivable 10/01/17 10/01/17 S 62,700 10/01/18 10/01/19 10/01/20 10/01/21 10/01/22 $ 313,043 Instructions: (a) Assuming the lessee's accounting period ends on September 30, answer the following questions with respect to this lease agreement (1) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2018? (2) What items and amounts will appear on the lessee's balance sheet at Septmbr 30, 2018? (3) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2019? (4) What items and amounts will appear on the lessee's balance sheet at September 30, 2019? (b) Assuming the lessee's accounting period ends on December 31, answer the following questions with respect to this lease agreement (1) What items and amounts will appear on the lessee's income statement for the year ending December 31, 2017? 2) What items and amounts will appear on the lessee's balance sheet at December 31, 2017 (3) What items and amounts will appear on the lessee's income statement for the year ending December 31, 20181 (4) What items and amounts will appear on the lessee's balance sheet at December 31, 2018