*Exercise 21-8 (Part Level Submission) The following facts pertain to a noncancelable lease agreement between Sheridan Leasing Company and Skysong Company, a lessee Inception date Annual lease payment due at the beginning of May 1, 2017 each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term Lease term $23,116.34 $4,200 s years Economic life of leased equipment Lessor's cost 10 years $71,000 $99,000 Fair value of asset at May 1, 2017 Lessor's implicit rate 10% 10% Lessee's incremental borrowing rate The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. The expected residual value of the equipment at the end of 5 (10) years is $12,000 (so) Click here to view factor tables Your answer is partially correct. Try again Prepare a lease amortization schedule for Skysong Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25126 and Round answers to 2 decimal places, e.g. 15.25.) SKYSONG COMPANY (Lessee) Lease Amortization Schedule Interest on Liability Annual Lease Payment Plus BPO Reduction of Lease Liability Date Lease Liability $t0 90237.05 3,116.34 23,116.3467120.71 123,116.3 6712.07 16404.27 50716.44 3,116.34 5071.64 18044.70 32671.74 5/1/20 3,116.34 3267.17 19849.17 12822.57 5/1/21 3,116.34 1282.26 21834.08