Chapter 21 Homework Question 5 of 8 View Policies Show Attempt History < Current Attempt in Progress 0.25/1 Kingbird Corporation leases a building to Blossom, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 10 years with equal annual rental payments of $3,475 at the end of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $34,200, a book value to Kingbird of $22,200, and a useful life of 15 years. 4. At the end of the lease term, Kingbird and Blossom expect the residual value of the building to be $12,000, and this amount is guaranteed by Money, Inc., a third party. 5. Kingbird wants to earn a 5% return on the lease, and collectibility of the payments is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Chapter 21 Homework Question 5 of 8 (D) 0.25/1 == Assume the present value of lease payments and third-party guarantee is $34,200 and the rate of return to amortize the net lease receivable to zero is 13.18%. Prepare the amortization schedules Kingbird would use to amortize the net lease receivable to zero. (Round answers to O decimal places, e.g. 5,275.) Date ./1/20 $ 2/31/20 .2/31/21 .2/31/22 .2/31/23 .2/31/24 .2/31/25 .2/31/26 .2/31/27 .2/31/28 .2/31/29 2/31/30 Annual Lease Payment $ KINGBIRD CORPORATION (Lessor) Lease Amortization Schedule Sales-Type Lease Interest on Lease Receivable $ Recovery of Lease Receivable Lease Receiv Chapter 21 Homework Question 5 of 8 < > Date 1/1/20 $ 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 12/31/29 Annual Lease Payment $ Lease AllIoT Lization Scheddie Direct Financing Lease Interest on Lease Receivable $ $ $ 3 *Rounded $1 eTextbook and Media $ Recovery of Lease Receivable 0.25/1 E $ Lease Rece