53 points Hilton Company signs a lease agreement on January 1, 2019, to lease a machine to Alfa Company The term of the non-cancelable lease is 3 years, and payments are required at the end of each year. The machine has a cost and fair value of $400,000 to Hilton Company. The useful economic life is 3 years, with no residual value. Alfa Company is required to pay $9,500 each year to the lessor for property taxes. Hilton Company desires to earn a return of 9% on its investment. Additional information: The present value of an Ordinary Annuity of $1 and the present value of an Annuity Due of $1 for 5 periods at 8%, 9% and 10% are as follows: The present value of an Ordinary Annuity of $1 Period 1 2 3 4 5 8% 0.92593 1.78326 2.57710 3.31213 3.99271 9% 10% 0.91743 0.90909 1.75911 1.73554 2.53129 2.48685 3.23972 3.16987 3.88965 3.79079 The present value of an Annuity Due of $1 Period 1 2 3 4 5 8% 9% 1.00000 1.00000 10% 1.00000 1.92593 1.91743 1.90909 2.78326 2.75911 2.73554 3.57710 3.53129 3.48685 4.31221 4.23972 4.16987 Instructions: (a) Prepare an amortization schedule through the year 2019 that would be suitable for the Lessor Activate Windows (b) Prepare the journal entries on the books of Hilton Company to reflect the payments received under the lease and to recognize income for the year 2019