Ivanhoe Leasing Company signs an agreement on January $1,2025,$ to lease equipment to Oriole Company. The following information

relates to this agreement.

The term of the non$-$cancelable lease is $6$ years with no renewal option. The equipment has an estimated economic life of $6$

years.

The cost of the asset to the lessor is $$341,000.$ The fair value of the asset at January $1,2025,$ is $$341,000.$

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

$$20,010,$ none of which is guaranteed.

The agreement requires equal annual rental payments, beginning on January $1,2025.$

Collectibility of the lease payments by Ivanhoe is probable.

Click here to view factor tables.

$(a)$

Your answer is correct.

Assuming the lessor desires an $8\%$ rate of return on its investment, calculate the amount of the annual rental payment required.

$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and the final answer to $0$ decimal places e$.$g$.$

$5,275.)$

Amount of the annual rental payment $ Prepare an amortization schedule that is suitable for the lessor for the lease term. $($Round answers to $0$ decimal places e$.$g$.5,275.)$

IVANHOE LEASING COMPANY $($Lessor$)$

Lease Amortization Schedule