A lessee has the following amortization schedule for a particular lease:

The company entered into the lease at the beginning of its fiscal year, on January 1, 2019. Depreciation follows the straight-line method. 

Required:

Provide the appropriate presentation of this lease in the lessee’s statement of financial position for December 31, 2021, distinguishing amounts that are current from those that are non current.

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Period 01/01/2019 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Interest for year @ 12% $17,087 15,393 13,496 11,372 8,992 6,328 3,343 Payments at end of year $31,200 31,200 31,200 31,200 31,200 31,200 31,200 Reduction in principal $14,113 15,807 17,704 19,828 22,208 24,872 27,857 Principal after interest and payments $142,389 128,276 112,469 94,765 74,937 52,729 27,857 0