Ivanhoe Corporation manufactures speciality equipment with an estimated economic life of $12$ years and leases it to Provincial Airlines Corp. for a period of $10$ years. Both Ivanhoe and Provincial Airlines follow ASPE. The equipment's

normal selling price is $$210,482$ and its unguaranteed residual value at the end of the lease term is estimated to be $$13,000.$ Provincial Airlines will make annual payments of $$24,300$ at the beginning of each year and pay for all

maintenance and insurance. Ivanhoe incurred costs of $$105,000$ in manufacturing the equipment and $$7,000$ in negotiating and closing the lease. Ivanhoe 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 $10\%.$ Provincial Airlines Corp. has an incremental borrowing rate of $10\%.$

Clickhere to view the factor table PRESENT VALUEOF $1.$

Click here to view the factor table PRESENT VALUEOF AN ANNUITY DUE.

Prepare a $10-$year lease amortization schedule for the lease obligation using Excel, $($Round answers to $0$ decimal places, e$.$g$.5,275.)$

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