At January $1,2024,$ Widget World Corporation leased manufacturing equipment from Clinton Corporation under a $6-$year lease agreement. The lease agreement specifies annual payments of $$25,000$ beginning January $1,2024,$ the beginning of the lease, and on each December $31$ thereafter through $2031.$ The equipment was acquired recently by Clinton at a cost of $$146,163($its fair value$)$ and was expected to have a useful life of $8$ years with no salvage value at the end of its life. Because the lease term is only $6$ years, the asset does have an expected residual value at the end of the lease term of $$28,000.$ Clinton seeks a $7\%$ return on its lease investments. By this arrangement, the lease is deemed to be a finance lease.

$3.$ Prepare a partial amortization schedule for the first year of the lease.

Prepare a partial amortization schedule for the first year of the lease.

$\backslash$table$[[$Date$,$Lease Payments,Effective Interest,$\backslash$table$[[$Decrease in$],[$Balance$]],\backslash$table$[[$Outstanding$],[$Balance$]]],[,,,,$$$127,505$