Exercise 21-9 The following facts pertain to a noncancelable lease agreement between Buffalo Leasing Company and Carla 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 Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $23,116.34 $4,200 5 years 10 years $71,000 $99,000 10% 10% 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 Click here to view factor table Your answer is correct. Compute the amount of the lease receivable at the inception of the lease. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 16.25.) Lease receivable at inception 99000 Your answer is partially correct. Try again Prepare a lease amortization schedule for Buffalo Leasing Company for the 5-year lease term. (Round answers to 2 decimal places, e.g 16.25.) BUFFALO LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Interest on Lease Recovery of Lease Date BPO Receivable Receivable Lease Receivable 99000 23116.24 23116.24 23116.24 5/1/20 23116.24 5/1/21 23116.24 4/30/22 Cost of Goods Sold Inventoryy To record the lease.) Cash Lease Receivable (To record lease payment.) 5058.91 12/31/17 5058.91 5/1/18Cash Lease Receivable 5/1/18 Cash Lease Receivable Interest Receivable Interest Revenue 12/31/18 4023.71 4023.71 2884.99 | 12/31/19 2884.99