Exercise 21.05 Larkspur Leasing Company signs an agreement on January 1, 2020, to lente equipment to Cole Company. The following information relates to this agreement 1 The term of the non-cancelable base is 6 years with no renewal option. The quipment has an estimated economice of years. 2. The cost of the asset to the lessor is 5341,000. The fair value of the acutat diary 1, 2020, Is 3341,000 3. These will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $20,010, none of which is guaranteed 4 The agreement requires equal annual rental payments, beginning on January 1, 2020. S. Collectibility of the lease payments by Larkspur is probable Click here to view actor tablet Your answer is correct Assuming the lessor desires 104 rate of return on its investment, calculate the amount of the annual rental payment required (For calculation purposes, we decimal places as displayed in the factor table provided and the final answer to decimal places. S.275.) Amount of the annual rental payment 60620 HOW TO LAST TEXT TEXT you wisatially correct Try on Your answer is partially correct. Try again. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.) LARKSPUR LEASING COMPANY (Lessor) Lease Amortization Schedule Interest on Lease Recovery of Lease Receivable Receivable Annual Lease Payment Plus URV Lease Receivable Date 1/1/20 341000 1/1/20 68820 68820 272180 1/1/21 68820 27218 203360 41602 1/1/22 68820 23058 161758 45762 1/1/23 115996 68820 18482 50338 1 1/1/24 9279 55375 79103 68820 1/1/25 68820 7910 18193 60910 12/31/25 20010 18193 18171 432930 91930 341000