ABC leased a satellite transmission device from XYZ on January 1, 2018. XYZ paid $800,000 for the transmission device. Its fair value is $80o,000. The lease term is 2 years, the first lease payment is at 1/1/2018, the second lease payment is at 1/1/2019. ABC has the right to use the device until 12/31/2019. The annual payment is $120,000. The economic life the transmission device is 2 years, and the market interest rate is 12%. PV factor of the annuity due with (12 % , 2) = 1.89286 Required: 1. Prepare an amortization schedule that shows the pattern of interest expense for ABC and interest revenue for XYZ over the lease term. Prepare the appropriate entries for both ABC and XYZ from January 1, 2018 to 12/31/2019, including adjusting entries at the end of 2018, at the end of 2019. 3 How much expense ABC recognize each year? How much revenue XYZ recognize each year? 2