2 On January 1, 20X1, Seven Wonders Inc. signed a five-year noncancelable lease with Moss Company. The lease calls for five payments of $277,409.44 to be made at the end of each year. The leased asset has a fair value of $1,200,000 on January 1, 20X1. Seven Wonders cannot renew the lease, there is no bargain purchase option, and ownership of the leased asset reverts to Moss at the lease end. The leased asset has an expected useful life of six years, and Seven Wonders uses straight-line depreciation for financial reporting purposes. Its incremental borrowing rate is 12%. Moss's implicit rate of return on the lease is unknown. Seven Wonders uses a calendar year for financial reporting purposes. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) 10 points Required: eBook References 2. Prepare an amortization schedule for the lease liability. 3. Prepare the journal entries to record (a) the lease as a finance lease on January 1, 20X1; (b) the lease payments on December 31, 20X1 and 20X2; and (c) the right-of-use asset amortization in 20X1 and 20X2. 4. What is the total amount of expense reported on Seven Wonders's 20X1 income statement from the lease? Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Prepare an amortization schedule for the lease liability. (Round your intermediate calculations and final answers to 2 decimal places. Input all values as positive amounts.) Amortization of Finance Lease Liability Seven Wonders Incorporated Date Interest Portion Cash Payment Reduction of Lease Liability Lease Liability 01/01/X1 Ani ANA