-740 III Question 8 of 8 View Policies Current Attempt in Progress The following facts pertain to a non-cancelablelease agreement between Faldo Leasing Company and Culver Company, a lessee January 1, $99,907 $50.000 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 lessen Expected residual value of equipment at end of lease term Lease term Economic life of leased equipment Fair value of asset at January 1. Lessor's implicit rate Lessee's incremental borrowing rate $45.000 6 years 6 years $556,000 69 6 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables (a) Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, es. 1.25124 and the final answers to decimal places 5.2750 CULVER COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Annual Lease i Question 8 of 8 +/40 Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, es 1.25124 and the final answers to decimal places. 5.275) CULVER COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Date Annual Lease Payment Plus GRV Lease 1/1/20 $ $ $ $ 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 12/31/26 $ $ $ e Textbook and Media List of Accounts Save for later Attempts: unlimited Submit