On $31$ December $20$X$0,$ Columbia Inc. entered into an agreement with Scotia Ltd$.$ to lease equipment with a useful life of $6$ years. Columbia Inc. will make four equal payments of $$102,000$ at the beginning of each lease year. Columbia Inc. anticipates that the equipment will have a residual value of $$81,600$ at the end of the lease, net of removal costs. Columbia Inc. has the option of extending the lease by $(1)$ paying $$81,600$ to retain the equipment or $(2)$ allowing Scotia Ltd$.$ to remove it$.$

Scotia Ltd$.$s implicit interest rate in this lease is $9\%.$ Columbia Inc.$$s incremental borrowing rate is $10\%.$ Columbia Inc. depreciates the leased equipment on a straight$-$line basis. The lease commences on $1$ January $20$X$1.$ Assume that the fair value of the equipment on the open market is greater than the present value of the lease payments.

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ Prepare a lease liability amortization table for this lease for Columbia Inc. $($Round your final answers to the nearest whole dollar amount. Leave no cell blank. Be certain to enter $"0"$ wherever required.$)$

$2.$ Prepare all entries that Columbia Inc. will record for this lease for $20$X$1$ and $20$X$2.($Round your intermediate calculations and final answers to the nearest whole dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)1$Record the commencement of lease.

$2$Record the payment of $1$st lease installment.

$3$Record the interest expense.

$4$Record the depreciation expense.

$5$Record the payment of $2$nd lease installment.

$6$Record the interest expense.

$7$Record the depreciation expense.