George Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $304,277, and its unguaranteed residual value at the end of the lease term is estimated to be $24,800. National will pay annual payments of $42,000 at the beginning of each year and all maintenance, insurance, and taxes. George incurred costs of $171,800 in manufacturing the equipment and $4,920 in negotiating and closing the lease. George has determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 9%. National Airlines Co. has an incremental borrowing rate of 9%.

Compute the amount of the initial obligation under capital leases. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,971.) The amount of the initial obligation under capital leases sHow LIST OF AC Prepare a 10-year lease amortization schedule. (Round answers to o decimal places eng. 58,970.) NATIONAL AIRLINES (Lessee) Lease Amortization Schedule Annuity due basis and URV) Reduct Beginning Interest on on of Lease Lease Annual Lease Payment of Year Lease Liability Liability Liabi Initial PW 10 SHOW LIST OF ACCOUNTS LINK TO TEXT