Company A started at the beginning of 2019. They entered into a lease with Jan 1st as both inception and commencement date The Lease term is as below - 5 yr non-cancellable - 5% interest rate - equal payment of $22916.51 at the end of each year - $1,000 bargaining purchase option at the end of lease term The useful life of this asset is 6 years with 0 residual value

Tax rate 25%, 30% and 35% each of the year

Earnings before interest, amortization and taxes for each year 2019 2020 2021

Required: a) Prepare an amortization table for the lease b) Record all related Journal entries c) Complete the balance sheet d) If instead of lease, company A pays $6,000/year rental to use the same equipment what impact would this make?