Exercise 21A-15 a-b Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Larkspur Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years 2. The fair value of the asset at January 1, 2017, is $66,000 3. The asset 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 $5,000, none of which is 4. 5. 6. guaranteed The agreement requires equal annual rental payments of $21,328 to the lessor, beginning on January 1, 2017 The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee Larkspur uses the straight-line depreciation method for all equipment. er view the factor tabl (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.) LARKSPUR COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Interest on Liability Reduction of Lease Liability Date Lease Liability