1. Plz don't Copy and paste 2. Plz Use Excel. There are two interest rate: Implicit interest rate (7%), and Incremental borrowing rate (8%). Which one should I use?

On 31 December 20X0, Columbia Inc. entered into an agreement with Scotia Ltd. to lease equipment with a useful life of 6 years. Columbia Inc. will make four equal payments of $100,000 at the beginning of each lease year. Columbia Inc. anticipates that the equipment will have a residual value of $80,000 at the end of the lease, net of removal costs. Columbia Inc. has the option of extending the lease by (1) paying $80,000 to retain the equipment or (2) allowing Scotia Ltd. to remove it. Scotia Ltd.'s implicit interest rate in this lease is 7%. Columbia Inc.'s incremental borrowing rate is 8%. Columbia Inc. depreciates the leased equipment on a straight-line basis. The lease commences on 1 January 20X1. Assume that the fair value of the equipment on the open market is greater than the present value of the lease payments. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare a lease liability amortization table for this lease for Columbia Inc. (Round your final answers to the nearest whole dollar amount. Leave no cell blank. Be certain to enter "0" wherever required.) Amortization Table January 1 January 1 Lease Payment January Balance after Lease Payment Lease Period Balance before payment Annual Interest Ending Balance 20X1 20X2 20X3 20X4 2. Prepare all entries that Columbia Inc. will record for this lease for 20X1 and 20X2. (Round your intermediate calculations and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 7 > Record the commencement of lease. Note: Enter debits before credits. Date 1 Jan. 20X1 Record entry General Journal Clear entry 6 Debit Credit View general journal 65 66 Useful life 67 Term 68 payment 69 Residual value 70 Implicit interest Interest rate 7% 71 Incremental borrowing rate 8% 72 73 74 PV 75 76 77 78 79 Amortization table 80 81 Lease period 82 83 84 85 86 87 88 89 90 91 2021 2022 2023 2024 6 years 4 years 100,000 Beginning 80,000 0.07 0.08 $357,710 pv(0.08,4,-100000,,1) $416,512 1,Jan, Balance before payment leasepayment $416,512 $291,191 $175,896 $69,824 100,000 100,000 100,000 100,000 $58,802 pv(0.08,4,0,-80000) Balance after lease payment Annual interest $316,512 $191,191 $75,896 -$30,176 $25,321 $15,295 $6,072 -$2,414 Ending balance $291,191 $175,896 $69,824 -$27,762