Kingston Corporation adopted ASU 2016-02 on January 1, 2017.On December 31, 2017. Thomas Henley, financial vice president of Kingston Corporation, signed a noncancelable three-year lease for a excavator. The lease calls for annual payments of $41,635 per year due at the end of each of the next three years. The leased equipment's expected economic life is six years. No cash changed hands because the first payment wasn't due until December 31, 2018. Assume that the appropriate rate or discounting the minimum ease payments is 12%. Thomas normally depreciates a sets using the straight-line basis homas has some concerns about how the lease will affect his financial statements. acitr The leaseals for annuail paymicn fi pamet' due until Dem o s conrns about how Required: 1. Prepare an amortization schedule for the lease. 2. Before the effects of the lease, Kingston Corporation had $2,000,000 of total assets and $1,000,000 in total debt. How will the new lease change it's debt-to- assets ratio at December 31, 2017? 3. Before the effects of the lease, Kingston has current assets of $500,000 and current liabilities of $294,118. How will the new lease affect the current ratio 4. Henley estimates that 2018 pre-tax income before the effects of the new lease will be approximately $267,000. What is the percentage change in pre-page 707 5. How would the answer to requirement 4 change if Kingston were using IFRS 16?. at December 31, 2017? tax income from the new lease