Date Payment Interest Principal Carrying Amount

9/1/2015 244,868
9/1/2015 55,000 - 55,000 189,868
9/1/2016 55,000 18,987 36,013 153,855
9/1/2017 55,000 15,386 39,614 114,241
9/1/2018 55,000 11,424 43,576 70,665
9/1/2019 55,000 7,067 47,933 22,732
9/1/2020 25,000 2,268 22,732 -

The amount of liability that Nakar would report would be 0.

Lease Liability - bal. (9/1/19) 22,732
Less: Payment (9/1/20) 22,732
Lease liability - 9/1/20 0