A finance lease agreement calls for quarterly lease payments of $$7,056$ over a $10-$year lease term, with the first payment on July $1,$ the beginning of the lease. The annual interest rate is $12\%.$ Both the present value of the lease payments and the cost of the asset to the lessor are $$168,000.$

Required:

a$.$ Prepare a partial amortization table up to the October $1$ payment.

b$.$ What would be the amount of interest expense $($revenue$)$ the lessee $($lessor$)$ would record in conjunction with the second quarterly payment on October $1?$

Complete this question by entering your answers in the tabs below.

Required A

Required $B$

Prepare a partial amortization table up to the October $1$ payment.

Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar.

$\backslash$table$[[$Date$,\backslash$table$[[$Lease$],[$Payment$]],\backslash$table$[[$Effective$],[$Interest$]],\backslash$table$[[$Decrease in$],[$balance$]],\backslash$table$[[$Outstanding$],[$balance$]]],[$July $1,,,,],[$July $1,,,,],[$October $1,,,,]]$