Estimated residual value at the end of lease term $ 15 000

Residual value guaranteed by lessee $ 7 500

The following information relates to the lease:

• Included in the annual payment is an amount of $ 1900 to cover reimbursement of insurance and maintenance cost paid by the lessor (i.e. executory costs).
• The directors of Tauranga Ltd have indicated that they intend to return the assets to Gisborne Ltd at the end of the lease term.
• The present value (PV) of lease payments has been calculated to be $85 457.
• The interest rate implicit in the lease is 7%.

Required

Prepare a schedule summarising the lease payments to be made over the term of the lease.