The following facts pertain to a non-cancellable lease agreement between Woodhouse Leasing Corporation and Coronado Electronics Ltd., a lessee, for a computer system: Inception date Lease term Economic life of leased equipment Fair value of asset at October 1, 2020 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, beginning October 1, 2020 October 1, 2020 6 years 6 years $151,183 -0- 8.5% 8.5% $30,600 The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. Coronado Electronics Ltd., the lessee, assumes responsibility for all repairs and maintenance costs, which amount to $2,500 per year and are to be paid each October 1, beginning October 1, 2020, by the lessee directly to the suppliers. 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 for the lease obligation has been prepared correctly for use by both the lessor and the lessee in accounting for this lease using ASPE. The lease is accounted for properly as a capital lease by the lessee and as a direct financing lease by the lessor. repared correctly for use by both the le Interest (8.5%) Reduction Balance of Annual on Unpaid of Lease Lease Lease Obligation/ Obligation/ Obligation/ Payment/ Net Net Net Date Receipt Investment Investment Investment 10/01/20 $ 151,183 10/01/20 $ 30,600 $ -o- $ 30,600 120,583 10/01/21 30,600 10,250 20,350 100,233 10/01/22 30,600 8,520 22,080 78,153 10/01/23 30,600 6,643 23,957 54,196 10/01/24 30,600 4,607 25,993 28,203 10/01/25 30,600 2,397 28,203 -0- $ 183,600 $ 32,417 $ 151,183 10/01/24 10/01/25 30,600 30,600 $ 183,600 4,607 2,397 32,417 $ 25,993 28,203 151,183 28,203 -0- $ Assuming that Coronado Electronics' accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to O decimal places, e.g. 5,275.) 1. What items and amounts will appear on the lessee's income statement for the year ended September 30, 2021? Coronado Electronics Ltd. Income Statement - Partial 2. What items and amounts will appear on the lessee's balance sheet at September 30, 2021? Coronado Electronics Ltd. Balance Sheet - Partial 3. What items and amounts will appear on the lessee's income statement for the year ended September 30, 2022? Coronado Electronics Ltd. Income Statement - Partial 4. What items and amounts will appear on the lessee's balance sheet at September 30, 2022? Coronado Electronics Ltd. Balance Sheet - Partial