Oakridge Leasing Corporation signs an agreement on January 1, 2023, to lease equipment to Cullumber Limited. Oakridge and Cullumber follow ASPE. The following information relates to the agreement: 1. The term of the non-cancellable lease is five years, with no renewal option. The equipment has an estimated economic life of six years. 2. The asset's fair value at January 1,2023 , is $82,000. 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 $6,500, which is guaranteed. 4. Cullumber assumes direct responsibility for all executory costs, which include the following annual amounts: $1,010 to Rocky Mountain Insurance Ltd. for insurance and \$1,640 to James Township for property taxes. 5. The agreement requires equal annual rental payments of $19,397 to Oakridge, the lessor, beginning on January 1,2023 . 6. The lessee's incremental borrowing rate is 13%. The lessor's implicit rate is 12% and is known to the lessee. 7. Cullumber uses the straight-line depreciation method for all equipment. 8. Cullumber uses reversing entries when appropriate. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Calculate the PV of the future minimum lease payments using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel functions. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 1,452.) Present value $ eTextbook and Media Prepare an amortization schedule for Cullumber for the lease term. Use Excel. (Hint: You may find the ROUND formula helpful for rounding in Excel.) (Round answers to 0 decimal places, e.g. 1,452.) eTextbook and Media List of Accounts Attempts: 0 of 2 used (c) Prepare all of Cullumber's journal entries for 2023 to record the lease agreement and the lease payments. Cullumber's accounting period ends on December 31. Ignore payments of insurance and property taxes. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, eg. 5,275.) Prepare a schedule contrasting the journal entries prepared in above part with those using an unguaranteed residual value of $6,500. lgnore payments of insurance and property taxes. (List all debit entries before credit entries. Credit account titles are Oakridge Leasing Corporation signs an agreement on January 1, 2023, to lease equipment to Cullumber Limited. Oakridge and Cullumber follow ASPE. The following information relates to the agreement: 1. The term of the non-cancellable lease is five years, with no renewal option. The equipment has an estimated economic life of six years. 2. The asset's fair value at January 1,2023 , is $82,000. 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 $6,500, which is guaranteed. 4. Cullumber assumes direct responsibility for all executory costs, which include the following annual amounts: $1,010 to Rocky Mountain Insurance Ltd. for insurance and \$1,640 to James Township for property taxes. 5. The agreement requires equal annual rental payments of $19,397 to Oakridge, the lessor, beginning on January 1,2023 . 6. The lessee's incremental borrowing rate is 13%. The lessor's implicit rate is 12% and is known to the lessee. 7. Cullumber uses the straight-line depreciation method for all equipment. 8. Cullumber uses reversing entries when appropriate. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Calculate the PV of the future minimum lease payments using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel functions. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 1,452.) Present value $ eTextbook and Media Prepare an amortization schedule for Cullumber for the lease term. Use Excel. (Hint: You may find the ROUND formula helpful for rounding in Excel.) (Round answers to 0 decimal places, e.g. 1,452.) eTextbook and Media List of Accounts Attempts: 0 of 2 used (c) Prepare all of Cullumber's journal entries for 2023 to record the lease agreement and the lease payments. Cullumber's accounting period ends on December 31. Ignore payments of insurance and property taxes. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, eg. 5,275.) Prepare a schedule contrasting the journal entries prepared in above part with those using an unguaranteed residual value of $6,500. lgnore payments of insurance and property taxes. (List all debit entries before credit entries. Credit account titles are