Brief Exercise 15-5 (Static) Finance lease lessee income statement effects (LO15-2] Alease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 5%. (FV of $1. PV of S1, EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: a. Determine the present value of the lease upon the lease's inception b. Create a partial amortization table through the second payment on January 1, 2017 c. If the lessee's 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 year ended December 31, 2016? Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the present value of the lease upon the lease's inception (Round your answers to nearest whole number and round percentage answer to 1 decimal place.) pv factors based on Table or Calculator function: Lease Payment PV of Lease Required> Complete this question by entering your answers in the tabs below. Required A Required B Required Create a partial amortization table through the second payment on January 1, 2017. (Enter all amounts as positive values. Round your answers to nearest whole number.) Date Lease Effective Decrease in Outstanding Payment Interest balance balance 01/01/2016 01/01/2016 01/01/2017 0 Complete this question by entering your answers in the tabs below. Required A Required B Required If the lessee's 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 year ended December 31, 2016? (Round your answers to nearest whole number.) Impact on pretax income related to the lease: Total expenses $