Coyotes Company manufactures a computer with an estimated economic life of $12$ years and

leases it to Ducks Company for a period of $10$ years. The normal selling price of the computer is

$$249,374,$ and its unguaranteed residual value at the end of the lease term to be $$10,000.$

Ducks will pay annual payments of $$30,000$ at the beginning each year. Coyotes incurred costs

of $$150,000$ in manufacturing the computer. Coyotes determined that the collectability of the

lease payments is reasonably predictable that no additional cost will be incurred and that the

implicit rate of interest is $5\%.$

$1.$Prepare a $10-$year lease amortization schedule for the lessor. $($Must use Excel$)$

Prepare all the lessor's journal entries for the first, second, and third years $($Show all

computations$)$

Assume that Ducks Company has an incremental borrowing rate of $5\%,$ prepare a $10-$year

lease amortization schedule. $($Must use Excel$)$

$4.$Prepare all the lessee's journal entries for the first, second, and third years $($Show all

computations$)$