Exercise 21A-10 a-d The following facts pertain to a non-cancelable lease agreement between Crane Leasing Company and Larkspur Company, a lessee Commencement date Annual lease payment due at the beginning of May 1, 2017 $20,703.86 $4,000 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 5 years 10 years $65,000 $92,000 8% 8% The collectibility of the lease payments by Crane is probable view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is partially correct. Try again 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 BPO Interest on Liability Reduction of Lease Liability Date Lease Liability 92000 20703.86 20703.86 71296.14 20703.86 5703.69 15000.17 56295.97 20703.86 4503.68 10496.49 45349.48 5/1/20 20703.86 3627.96 7318.53 38030.95 5/1/21 20703.86 3042.48 4276.05 33754.9 4/30/22 4000 2700.39 1575.66 32179.24 107519.3 19560.2 59820.76 | 5/1/17 11 Right-of-Use Asset 92000 Lease Liability (To record the lease) Lease Liability 92000 20703.86 Cash 20703.86 12/31/17Interest Expense 5703.69 Lease Liability (To record interest expense) Amortization Expense 11964.15 Right-of-Use Asset 11964.15 (To record amortization of the right-of-use asset) 1/1/18 Lease Liability Interest Expense