In the worksheet lease amortization schedule, you will find information about a three-year lease initiated on Jan. 1, Year 1. This lease calls for quarterly payments of $30,000 at the beginning of each quarter, starting from Jan. 1, Year 1. The market interest rate at the time of issuance is 12%. Please calculate the present value of lease payments, and complete the amortization schedule. You have to put in the correct formulas, not just the numbers.

You will also answer seven questions after completing the amortization schedule.

Please note that this schedule amortizes the lease payable according to the effective rate method. It is not the amortization of the right-of-use asset.

In the worksheet sensitivity, you will put in numbers, not formulas. Other than the lease payments and effective interest rate, everything else is the same. You can obtain these numbers from the worksheet lease amortization schedule by changing values in appropriate cells. Please remember to change these numbers back to their original values in the worksheet lease amortization schedule before submission.

\begin{tabular}{|c|c|c|c|c|} \hline Lease Term (in years) & 3 & & & \\ \hline quarterlyrentalpayme(paidatthebeginning0quarter) & $30,000 & & & \\ \hline Effective interest rate & 12% & & & \\ \hline \multicolumn{5}{|c|}{ Present value of lease payments } \\ \hline \multicolumn{5}{|c|}{ Prepare the lease amortization schedule. } \\ \hline Payment Date & LeasePayments & EffectiveInterest & DecreaseinBalance & LeaseBalance \\ \hline \multicolumn{5}{|l|}{01/01/Y1} \\ \hline \multicolumn{5}{|l|}{04/01/Y1} \\ \hline \multicolumn{5}{|l|}{07/01/Y1} \\ \hline \multicolumn{5}{|l|}{10/01/Y1} \\ \hline \multicolumn{5}{|l|}{01/01/Y2} \\ \hline \multicolumn{5}{|l|}{04/01/Y2} \\ \hline \multicolumn{5}{|l|}{07/01/Y2} \\ \hline \multicolumn{5}{|l|}{10/01/Y2} \\ \hline \multicolumn{5}{|l|}{01/01/Y3} \\ \hline \multicolumn{5}{|l|}{04/01/Y3} \\ \hline \multicolumn{5}{|l|}{07/01/Y3} \\ \hline \multicolumn{5}{|l|}{10/01/Y3} \\ \hline total & & & & \\ \hline \end{tabular}