A lease agreement that qualifies as a finance lease calls for annual lease payments of $40,000 over a five-year lease term (also the assets useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 4%.

Required: a. Determine the present value of the lease upon the lease's inception. b. Create a partial amortization through the first payment on January 1, 2017. c. If the lessees fiscal year is the calendar year, what would be the pretax amounts related to the lease that the lessee would report in its income statement for the first year ended December 31?

Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the present value of the lease upon the lease's inception. (Round your answers to nearest wholer round percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: Lease Payment 4,0% PV of Lease Required A Required B > Complete this question by entering your answers in the tabs below. Required ARequired B Required C Create a partial amortization through the first payment on January 1, 2017. (Enter all amounts as positive val answers to nearest whole number.) Lease Payment Effective Interest Decrease in Outstanding Date 01/01/2016 01/01/2016 01/01/2017 balance balance Required A Required C> Complete this question by entering your answers in the tabs below. Required Required B Required c If the lessee's fiscal year is the calendar year, what would be the pretax amounts related to the lease that report in its income statement for the first year ended December 31? (Round your answers to nearest who Impact on pretax income related to the lease: Total expenses KRequired B Required C