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Reporting a Finance Lease Pier10 Inc. entered into a five-year lease and recorded a...

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Accounting

Reporting a Finance Lease
Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $88,000 on January 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease ha an estimated five-year useful life with no residual value. The first lease payment of $19,358 was due upon commencement of the lease.
Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31.
Note: Round your answers to the nearest whole dollar.
Note: Do not use negative signs with your answers.
\table[[Balance Sheet,,December 31],[Assets,,,,],[Noncurrent assets:,,,,],[Right-of-Use Asset,widehat(AA),$,88,000,x
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