Exercise 21A-15 a-b (Part Level Submission) Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Plote 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 The fair value of the asset at January 1, 2017, is $80,000. 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 $7,000, none of which is guaranteed The agreement requires equal annual rental payments of $25,563 to the lessor, beginning on January 1, 2017. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 490 and is unknown to the lessee Plote uses the straight-line depreciation method for all equipment. 2. 3. 4. 6. Click here to 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 an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.) PLOTE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Interest on Liability Reduction of Lease Liability Date Lease Liability 0