Ayayai Corporation entered into a lease agreement on January 1, 2020, to provide Blossom Company with a piece of machinery. The terms of the lease agreement were as follows. 1. The lease is to be for 3 years with rental payments of $12,992 to be made at the beginning of each year. 2. The machinery has a fair value of $62,000, a book value of $40,000, and an economic life of 8 years. a 3. At the end of the lease term, both parties expect the machinery to have a residual value of $30,000, none of which is guaranteed. 4. The lease does not transfer ownership at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature. 5. The implicit rate is 5%, which is known by Blossom. . 6. Collectibility of the payments is probable. Prepare the amortization schedules Blossom will use over the lease term. BLOSSOM COMPANY Lease Amortization Schedule Annuity-Due Basis Interest on Liability Reduction of Lease Liability Annual Payment Lease Liability 48371.81 ta $ 12992 12992 35379.81 1769 12992 11223 24157 1208 12992 11784 12373 Lease Expense Schedule (A) (C) Amortization of Right-of-Use Asset (and Liability) (A-B) (B) Interest on Lease Liability Straight-Line Expense Carrying Value of Right-of-Use Asset $ $ $