The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and Flounder 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		$250,291
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		$53,300

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.

Lease Payment/Receipt Interest (11%) on Unpaid Liability/Receivable Reduction of Lease Liability/Receivable Date 10/01/20 10/01/20 10/01/21 10/01/22 10/01/23 10/01/24 10/01/25 $53,300 53,300 53,300 53,300 53,300 53,300 $319,800 $21,669 18,190 14,328 10,041 5,281 $69,509 $53,300 31,631 35.110 38,972 43,259 48,019 $250,291 Balance of Lease Liability/Receivable $250,291 196,991 165,360 130,250 91,278 48,019 -0- Assuming the lessee's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to decimal places eg. 58,971.) (1) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2021? $ Interest Expense $ Lease Expense (2) What items and amounts will appear on the lessee's balance sheet at September 30, 2021? Balance Sheet (Partial) September 30, 2021 $ Current Liabilities: Lease Liability Long-term Liabilities: Lease Liability Non-current Assets: Leased Asset $ $ (3) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2022? $ Interest Expense $ Prepaid Lease Executory Costs (4) What items and amounts will appear on the lessee's balance sheet at September 30, 2022? Balance Sheet (Partial) For the Year Ended September 30, 2022 $ $ Current Liabilities: Lease Liability Long-term Liabilities: Lease Liability $ Non-current Assets: Leased Asset $