Nancy Leasing Company signs an agreement on January $1,2025,$ to lease equipment to Kingbird Company. The following information relates to this agreement.

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 $1,2025,$ is $$81,000.$

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 $$7,000,$ none of which is guaranteed.

The agreement requires equal annual rental payments of $$25,909\mathrm{.}45$ to the lessor, beginning on January $1,2025.$

The lessee's incremental borrowing rate is $5\%.$ The lessor's implicit rate is $4\%$ and is unknown to the lessee.

Kingbird uses the straight$-$line depreciation method for all equipment.

Click here to view factor tables.

$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

$($a$)$

Prepare an amortization schedule that would be suitable for the lessee for the lease term. $($Round answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}15.)$

$\backslash$table$[[\backslash$table$[[$KINGBIRD COMPANY $($Lessee$)],[$Lease Amortization Schedule$]]],[$Date$,\backslash$table$[[$Annual Lease$],[$Payment$]],\backslash$table$[[$Interest on$],[$Liability$]],\backslash$table$[[$Reduction of Lease$],[$Liability$]],$Lease Liability$],[\frac{1}{1}\frac{?}{25},$$$,$$$,$$$,$$$],[\frac{1}{1}\frac{?}{25},,,,],[\frac{1}{1}\frac{?}{26},,,,],[1/1/27,,,,],[,,$$$,$$$,]]$