Mike Macinski Leasing Company leases a new machine that has a cost and fair value of $80,900 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2014. Mike Macinski Leasing Company expects to earn a 9% return on its investment. The annual rentals are payable on each December 31. (b) Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

TABLE 6-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 In) 11% 15% 10% 89286 91743 1.75911 2.53130 3.23972 1.62571 2.44371 3.10245 2.40183 3.03735 2.57710 3.99271 4.62288 5.74664 6.71008 2.85498 448592 .86842 5.03295 5.99525 3.79079 4.35526 4.35526 471220 498784 4.77158 4.11141 4.56376 4.48732 5.01877 5.23371 5.56315 5.84737 5.14612 5.75902 5.93770 6.19437 7.53608 7.90378 7.16073 1.48690 3 7.19087 7.78615 6.74987 6.98187 6.62817 6.81086 5.95424 6.04716 6.12797 6.97399 7.37916 7.54879 7.70162 8.31256 7.82371 7.24967 7.36578 8.54363 7.83929 46944 12184 11963 8.95012 9.12855 9.60360 8.51356 9.81815 10.01680 10.20074 10.52876 10.674 8.17574 9.2224 8.77154 8.28843 1.74326.4415 6.31246 64466.39884 6.43377 9.44243 7.71843 7.84314 7.89566 9.70861 9.82258 8.98474 9.07704 8.34814 8.42174 25 10.27365 939 860 7.9425s649056 8.69379 8.7331 48808 .94255 53351 16095 54780 98442 6.55088 0.80998 10.02658 9.67 65011 8.05518 9.92897 9222 60162 0218 58598 27 28 29 8.51353 11.15841 0.34280 9.526388.80054 8.15666 6.61681 6.57911 9.47901 1.43500 0.46444 9.80858 8.85524 8.11159 11.51389 6.80910 10.51784 35 9.64416 11.65457 1.71719 11.77518 6.62314 6.63375 6.64178 8.19241 8.20751 10.61176 10.65299 9.73265 8.91859 10.72552 10.75736 9.75697 9.77905 8.23303 8.24378 11.87858 Reduction of Princip Receivable/ Liabilit Rent Receipt/ Payment Interest Revenue/ Expense 12/31/14 12/31/15 12/31/16