Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Kingbird Company. The following information relates to this agreement. 1. 2. 3. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2020, is $66,000. 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 $5,000, none of which is guaranteed. The agreement requires equal annual rental payments of $21,328 to the lessor, beginning on January 1, 2020. The lessee's incremental borrowing rate is 5%. The lessor's implicitrate is 4% and is unknown to the lessee. Kingbird uses the straight-line depreciation method for all equipment. 4. 5. 6. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to decimal places, es. 5,265.) Annual Lease Payment KINGBIRD COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability $ Lease Liability $ 0 $ 0 $ 21328 0 21328 44672 21328 1787 19541 25131 21328 1005 20323 0 $ 63984 $ 2792 $ 61192