Please note that no question is duplicated.

Problem 21-5 The following facts pertain to a noncancelable lease agreement between Sarasota Leasing Company and McKee Electronics, a lessee, for a computer system Inception date October 1, 2017 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at October 1, 2017 $255,349 Residual value at end of lease term -0 Lessor's implicit rate 10% Lessee's incremental borrowing rate 10% Annual lease payment due at the beginning of each year, beginning with October 1, 2017 $53,300 The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs, which amount to $6,700 per year and are to be paid each October 1, beginning October 1, 2017. (This $6,700 is not included in the rental payment of $53,300.) 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 capital lease by the lessee and as a direct-financing lease by the lessor. Annual Lease Interest (10%) on unpaid Reduction of Lease Balance of Lease Date Payment/Receipt Liability Receivable Liability/Receivable Liability/Receivable 10/01/17 $255,349 202,049 10/01/17 53,300 $53,300 10/01/18 33,095 36,405 53,300 $20,205 168,954 132,549 92,504 10/01/19 53,300 16,895 13,255 10/01/20 53,300 40,045 10/01/21 53,300 9,250 44,050 48,454 53,300 48,454 10/01/22 4,846 $319,800 564,451 $255,349 Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimalplaces e.g. 58,971.) (1) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2018? (2) What items and amounts will appear on the lessor's balance sheet at Septeber 30, 2018? Balance Sheet (Partial) September 30, 2018 Current Assets Noncurrent Assets (3) What items and amounts will appear on the lessor's income statement for the year ending September 30, 20197 (4) What items and amounts will appear on the lessor's balance sheet at September 30, 2019 Balance Sheet (Partial) September 30, 2019 Current Assets Noncurrent Assets Assuming the lessor's accounting period ends on December 31, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessor's income statement for the year ending December 31, 20177 (2) What items and amounts will appear on the lessor's balance sheet at December 31, 2017? Balance Sheet (Partial) December 31, 2017 Current Assets Noncurrent Assets (3) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2018? (4) What items and amounts will appear on the lessor's balance sheet at December 31, 2018? Balance Sheet (Partial) December 31, 2018 Current Assets Noncurrent Assets