LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $23,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare a Lease Amortization Schedule and a Lease Expense Schedule. Assume the implicit rate used by the lessor is unknown, and LBJ's incremental borrowing rate is 6%. Lease Amortization Schedule: Date 1/1/20 Annual Payment Interest on Lease Liability Reduction of Lease Liabili 1/1/20 [Select] [Select] [Select] 1/1/21 [Select] [Select] [Select] 1/1/22 [Select] [Select] Lease Expense Schedule: Date Lease Expense (Straight-line) Interest on Lease Liability 1/1/20 12/31/20 [Select] [Select] 12/31/21 [Select] [Select] 12/31/22 [Select] > [Select] [Select] > Amortization on Right-c [Select] [Select] [Select] Asset