The inception of a lease is January 1,2014.A third party guarantees the residual value of the asset under the lease,estimated to be $12,000 at January 1,2019,the end of the lease term.Annual lease payments are $10,000 due each December 31,beginning December 31,2014.The last payment is due December 31,2018.Both the lessor and lessee use 10% as the interest rate.The remaining useful life of the asset was six years at the inception of the lease.
What is the net asset balance for the lessor,and net liability balance for the lessee,at the date of the inception of the lease?

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The Answer of The inception of a lease is January 1,2014.A third party guarantees the residual value of the asset under the lease,estimated to be $12,000 at January 1,2019,the end of the lease term.Annual lease payments are $10,000 due each December 31,beginning December 31,2014.The last payment is due December 31,2018.Both the lessor and lessee use 10% as the interest rate.The remaining useful life of the asset was six years at the inception of the lease.
What is the net asset balance for the lessor,and net liability balance for the lessee,at the date of the inception of the lease?

The Inception of a Lease Is January 1,2014