1.A lease agreement calls for annual lease payments of $26,269 over a six year lease term, with the first payment at January 1, the lease's commencement, and subsequent payments at January 1 of the following five years. The interest rate is 5%. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable?