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, 2025 Book value of asset at October 1, 2025 Residual value at end of lease term October 1, 2025 6 years 6 years $ 313,043 $ 280,000 50 8% 8% Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2025 $ 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%) on Unpaid Lease Liability/ Reduction of Payment/ Receivabl Lease Liability/ Date Receipt Receivable 10/01/25 $ 10/01/25 $ 62,700 $ 62,700 Balance of Lease Liability/ Receivable 313,043 250,343 10/01/26 62,700 $20,027 42,673 207,670 10/01/20 62,700 16,614 46,086 161,584 29 10/01/28 62,700 12,927 49,773 111,811 30 10/01/29 62,700 8,945 51,755 58,056 81 10/01/30 62,700 4,544 58,056 32 83 $ 376,200 $63,157 5 313,043 34 Instructions Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement. 3. 4. 35 36 37 38 39 2. 40 41 42 43 44 45 b. 46 47 48 49 50 51 What items and amounts will appear on the lessor's income statement for the year ending September 30, 2026? What items and amounts will appear on the lessor's balance sheet at September 30, 20267 What items and amounts will appear on the lessor's income statement for the year i ending September 30, 2022? What items and amounts will appear on the lessor's balance sheet at September 30, 2027? Assuming the lessor's accounting period ends on December 31, answer the following questions with respect to this lease agreement. 1. 2 3. What items and amounts will appear on the lessor's income statement for the year ending December 31, 2025? What items and amounts will appear on the lessor's balance sheet at December 31, 20257 What items and amounts will appear on the lessor's income statement for the year ending December 31, 2026? 54 55 4. What items and amounts will appear on the lessor's balance sheet at December 31, 20267 56 NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow differ from the tohtines manual dan to rounding sulting from more