The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and Teal 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		$286,968
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		$59,900

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								$286,968
10/01/20		$59,900				$59,900		227,068
10/01/21		59,900		$22,707		37,193		189,875
10/01/22		59,900		18,988		40,912		148,963
10/01/23		59,900		14,896		45,004		103,959
10/01/24		59,900		10,396		49,504		54,455
10/01/25		59,900		5,445		54,455		0
		$359,400		$72,432		$286,968

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, 2020? (2) What items and amounts will appear on the lessee's balance sheet at December 31, 2020? Balance Sheet (Partial) Current Liabilities: Long-term Liabilities: Non-current Assets: (3) What items and amounts will appear on the lessee's income statement for the year ending December 31, 2021? (4) What items and amounts will appear on the lessee's balance sheet at December 31, 2021? Balance Sheet (Partial) Current Liabilities: $ Long-term Liabilities: $ Non-current Assets: $