Problem 15-24 Lessee; effect on financial statements; Type B lease [Supplement] At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year lease agreement. The contract calls for quarterly lease payments of $34,000 each at the end of each quarter. The office building was acquired by Lakeside at a cost of $1 million and was expected to have a useful life of 25 years with no residual value. Lakeside seeks a 10% return on its lease investments Appropriate adjusting entries are made quarterly Respond to the question with the presumption that the guidance provided by the proposed Accounting Standards Update is being applied Required 1. What amounts related to the lease would LTT report in its balance sheet at December 31, 2016? Balance Sheet: Lease Payable Initial balance Quarter 1 reduction Quarter 2 reduction Quarter 3 reduction Quarter 4 reduction 0 End-of-year balance Right-of-Use Asset Initial balance Amortization for the year End-of-year balance 2. What amounts related to the lease would LTT report in its income statement for the year ended December 31, 2016 (ignore taxes)? AmortizationTotal Lease nteres Expense Expense Expense Quarter 1 Quarter Quarter3 Quarter 4 Total 0 0 0 S 0 S