The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and Buffalo 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		$321,200
Book value of asset at October 1, 2020		$280,000
Residual value at end of lease term		0
Lessors implicit rate		11	%
Lessees incremental borrowing rate		11	%
Annual lease payment due at the beginning of
each year, beginning with October 1, 2020		$68,400

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 (11%) on Unpaid Liability/Receivable		Reduction of Lease Liability/Receivable		Balance of Lease Liability/Receivable
10/01/20								$321,200
10/01/20		$68,400				$68,400		252,800
10/01/21		68,400		$27,808		40,592		212,208
10/01/22		68,400		23,343		45,057		167,151
10/01/23		68,400		18,387		50,013		117,138
10/01/24		68,400		12,885		55,515		61,623
10/01/25		68,400		6,777		61,623		0
		$410,400		$89,200		$321,200

Assuming the lessees accounting period ends on December 31, 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 December 31, 2020?

$	Interest Expense
$	Amortization Expense

(2) What items and amounts will appear on the lessees balance sheet at December 31, 2020?

Balance Sheet (Partial)	December 31, 2020
Current Liabilities
Lease Liability	$
Long-Term Liabilities
Lease Liability	$212,208
Non Current Assets
Right-of Use Asset	$

(3) What items and amounts will appear on the lessees income statement for the year ending December 31, 2021?

$	Interest Expense
$53,533	Amortization Expense

(4) What items and amounts will appear on the lessees balance sheet at December 31, 2021?

Balance Sheet (Partial)	December 31, 2021
Current Liabilities
Lease Liability	$
Long-Term Liabilities
Lease Liability	$167,151
Non Current Assets
Right-of Use Asset	$