in ERMEDATE ACCTG (ACCT 311/2 8 R URION Downloadable eTextbook nt CALCULATOR FULL SCREEN PRINTER VERSION BACK Exercise 21-11 (Part Level Submission) Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Pina Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5 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 $77,300. 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 $6,600, mone of which is quaranteed 4. Pina Company assumes direct responsibility for all executory costs, which include the following annual amounts: (1) $880 to Rocky Mountain Insurance Company for insurance and (2) $1,450 to Laclede County for property taxes . The agreement requires equal annual rental payments of $17,555.01 to the lessor, beginning on January 1, 2017, 6. The lessee's incremental borrowing rate is 12%. The lessor's implicit rate is 10% and is known to the lessee. 7. Pina Company uses the straight-line depreciation method for all equipment. s. Pina used reversing entries when appropriate. Prepare an amortization schedule that would be suitable for the lessee for the lease term fth 1.25124 and Round answers to 2 decimal places.on T