$46,000 1 000 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, Residual value of equipment at end of lease term, guaranteed by the lessee Expected residual value of equipment at end of Lease term Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate 6 years Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to decimal places eg. 5,275.) SWIFTY COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus GRV Interest on Liability Reduction of Lease Liability Lease Liability 113,110 113,10 113,110 X Your answer is incorrect. Suppose Swifty received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use assets Lease Liability What if Swifty prepaid rent of $5,000 to Faldo? Right-of-use assets Lease Liability s e Textbook and Media List of Accounts