2. Present Value of 1 Table. Contains the amounts that must be deposited now at a specified rate of interest to equal 1 at the end of a specified number of periods (Table 6.2). TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) PVFn = qto = (1 + i)-" (n) Periods 2% 4% 6% .98039 .96117 .94232 .92385 .90573 21/2% .97561 .95181 .92860 .90595 .88385 3% .97087 .94260 .91514 .88849 .86261 .96154 -92456 .88900 .85480 .82193 5% .95238 .90703 .86384 .82270 -78353 .94340 .89000 .83962 -79209 -74726 .74622 -71068 .88797 .87056 .85349 .83676 .82035 .86230 .84127 .82075 .80073 -78120 .83748 .81309 .78941 -76642 -74409 -79031 -75992 -73069 -70259 .67684 .64461 .61391 -70496 .66506 .62741 -59190 -55839 .67556 .80426 .78849 -77303 .64958 .62460 -76214 -74356 -72542 .70773 .69047 .72242 -70138 .68095 .66112 .64186 .60057 -58468 -55684 -53032 -50507 -48102 -52679 .49697 .46884 -44230 .41727 -75788 -57748 -55526 -74301 -53391 .72845 -71416 .67362 .65720 .62317 .60502 -45811 .43630 39365 -37136 -51337 5. Present Value of an Annuity Due of 1 Table. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the beginning of regular periodic intervals for the specified number of periods (Table 6.5). TABLE 6.5 Present Value of an Annuity Due of 1 1- - 1 PVF-ADR = 1+ (n) Periods 6% 1.00000 1.94340 2.83339 3.67301 4.46511 5.21236 2% 1.00000 1.98039 2.94156 3.88388 4.80773 5.71346 6.60143 7.47199 8.32548 9.16224 9.98259 10.78685 11.57534 12.34837 13.10625 13.84926 14.57771 15.29187 15.99203 16.67846 21/2% 1.00000 1.97561 2.92742 3.85602 4.76197 5.64583 6.50813 7-34939 8.17014 8.97087 9.75206 10.51421 11.25776 11.98319 12.69091 13-38138 14.05500 14.71220 15-35336 15.97889 3% 1.00000 1.97087 2.91347 3.82861 4.71710 5-57971 6.41719 7.23028 8.01969 8.78611 9.53020 10.25262 10.95400 11.63496 12.29607 12.93794 13-56110 14.16612 14.75351 15-32380 4% 1.00000 1.96154 2.88609 3.77509 4.62990 5.45182 6.24214 7.00205 7.73274 8.43533 9.11090 9.76048 10.38507 10.98565 11.56312 12.11839 12.65230 13.16567 13.65930 14.13394 5% 1.00000 1.95238 2.85941 3.72325 4-54595 5-32948 6.07569 6.78637 7.46321 8.10782 8.72173 9.30641 9.86325 10.39357 10.89864 11.37966 11.83777 12.27407 12.68959 13.08532 5.91732 6.58238 7.20979 7.80169 8.36009 8.88687 9.38384 9.85268 10.29498 10.71225 11.10590 11.47726 11.82760 12.15812 Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Blue Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2020, is $75,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $8,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $23,522.48 to the lessor, beginning on January 1, 2020. 5. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. 6. Blue uses the straight-line depreciation method for all equipment. Click here to view factor tables. Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease liability)