Exercise 21A-10 a-d (Part Level Submission) The following facts pertain to a non-cancelable lease agreement between Crane Leasing Company and Larkspur Company, a lessee. May 1, 2017 Commencement date Annual lease payment due at the beginning of 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 $15,138.16 $4,000 5 years 10 years $50,000 $68,000 8 % R The collectibility of the lease payments by Crane is probable. (c) Prepare a lease amortization schedule for Larkspur for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) LARKSPUR COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus Interest on Reduction of Lease Liability Liability Date BPO Lease Liability 5/1/17 5/1/17 5/1/18 5/1/19 5/1/20 5/1/21 4/30/22