Marin Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement.

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

2. The cost of the asset to the lessor is $230,000. The fair value of the asset at January 1, 2017, is $230,000.

3. 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 $24,339, none of which is guaranteed.

4. The agreement requires equal annual rental payments, beginning on January 1, 2017.

5.Collectibility of the lease payments by Marin is probable.

Assuming the lessor desires a 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 O 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 o decimal places e.g. 5,275.) MARIN LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Interest on Lease Recovery of Lease URV Receivable R eceivable Lease Receivable Date 1/1/17 1/1/17 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22 12/31/22 Prepare all of the journal entries for the lessor for 2017 and 2018 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/17 (To record the lease) 1/1/17 (To record the receipt of lease payment) 12/31/17 | 11/18 12/31/18 1. FUTURE VALUE OF 1 TABLE. Contains the amounts to which I will accumulate if deposited now at a specified rate and left for a specified number of periods (Table 6.1). Table 6.1 FUTURE VALUE OF 1 (FUTURE VALUE OF A SINGLE SUM) FVF i = (1 + i)" (n) Periods 2% 27% 3% 4% 5% 6% 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.06121 1.07689 1.09273 1.15763 1.19102 1.12486 1.16986 1.08243 1.10381 1.12551 1.21551 1.26248 1.10408 1.13141 1.15927 1.21665 1.27628 1.33823 1.12616 1.15969 1.19405 1.26532 1.34010 1.41852 1.14869 1.18869 1.22987 1.31593 1.40710 1.50363 1.17166 1.21840 1.26677 1.36857 1.47746 1.59385 1.19509 1.24886 1.30477 1.42331 1.55133 1.68948 References page 1.21899 1.28008 1.34392 1.48024 1.62889 1.79085 11 1.24337 1.31209 1.38423 1.53945 1.71034 1.89830 1.26824 1.34489 .29361 1.37851 1.42576 1.46853 1.60103 1.66507 1.79586 1.88565 2.01220 2.13293 13 1 2. PRESENT VALUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to equal 1 at the end of a specified number of periods (Table 6.2). Table 6.2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVFni = ato = (1+i)-" 2% 24% 3% 4% 5% (n) Periods 6% .94340 .89000 .98039 97561 97087 96154 95238 .96117 95181 94260 92456 90703 .94232 92860 91514 88900 .86384 .92385 90595 .88849.85480 .82270 90573 .88385 .86261 82193 78353 .83962 .79209 .74726 .70496 .88797 .86230 .83748 79031 .74622 .87056 .84127 .81309 75992 .71068 .85349 .82075 78941 73069 .67684 .66506 .62741 .83676 80073 .76642 70259 .64461 .59190 .82035 78120 .74409 .67556 .61391 .55839 .80426 76214 72242 .64958 58468 .52679 .78849 .74356 70138 .62460 55684 49697 3. FUTURE VALUE OF AN ORDINARY ANNUITY OF 1 TABLE. Contains the amounts to which periodic rents of 1 will accumulate if the payments (rents) are invested at the end of each period at a specified rate of interest for a specified number of periods (Table 6.3). Table 6.3 FUTURE VALUE OF AN ORDINARY ANNUITY OF 1 FVF-OA,i = (1+i)*_1 (n) Periods 2% 27% 3% 4% 5% 6% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2.02000 2.02500 2.03000 2.04000 2.05000 2.06000 3.15250 3.18360 3.06040 4.12161 3.07563 4.15252 3.09090 4.18363 3.12160 4.24646 4.310134.37462 5.20404 5.25633 5.30914 5.41632 5.52563 5.63709 6.30812 6.38774 6.46841 6.63298 6.80191 6.97532 7.43428 7.54743 7.66246 7.89829 8.14201 8.39384 9.89747 8.58297 8.73612 8.89234 9.21423 9.54911 9.75463 9.95452 10.15911 10.58280 11.02656 11.49132 10.94972 12.16872 13.41209 11.20338 12.48347 13.79555 11.46338 12.80780 14.19203 12.00611 13.48635 15.02581 12.5778913.18079 14.20679 14.97164 15.91713 16.86994 4. PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the end of regular periodic intervals for the specified number of periods (Table 6.4). Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 PVF-0An: = (n) Periods 2% 22% 3% 4% 5% 6% 9803997561 9708796154 95238 .94340 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 7.32548 7.17014 7.01969 6.73274 6.463216.20979 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 10.57534 10.25776 9.95400 9.38507 8.863258.38384 12 5. PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the beginning of regular periodic intervals for the specified number of periods (Table 6.5). Table 6.5 PRESENT VALUE OF AN ANNUITY DUE OF 1 I - 1 PVF-AD = 1+ (1+1"-1 (n) Periods 2% 24% 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97087 1.96154 1.94340 1.97561 2.92742 1.95238 2.85941 2.91347 2.88609 2.83339 2.94156 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.471997 .349397.23028 7.00205 6.78637 6.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.16224 8.97087 8.78611 8.43533 7.80169 8.10782 8.72173 11 9 .98259 9.75206 9.53020 9.11090 8.36009 12 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687