Martinez Industries and Sandhill Inc. enter into an agreement that requires Sandhill Inc. to build three diesel-electric engines to Martinez's specifications. Upon completion of the engines, Martinez has agreed to lease them for a period of 10 years and to assume all costs and risks of ownership. The lease is non-cancelable, becomes effective on January 1, 2020, and requires annual rental payments of $405,443 each January 1, starting January 1, 2020. Martinez's incremental borrowing rate is 8%. The implicit interest rate used by Sandhill and known to Martinez is 7%. The total cost of building the three engines is $2,685,000. The economic life of the engines is estimated to be 10 years, with residual value set at zero. Martinez depreciates similar equipment on a straight-line basis. At the end of the lease, Martinez assumes title to the engines. Collectibility of the lease payments is probable. Prepare a lease amortization schedule for 2 years. (Round answers to 0 decimal places e.g. 58,971.) MARTINEZ INDUSTRIES/SANDHILL INCORPORATED Lease Amortization Schedule Interest on Reduction in Receivable/Liability Receivable/Liability Annual Lease Receipt/Payment Lease Receivable/ Liability $ $ $ $ $