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On 4 / 1 / 2 0 , EnterpriseCorporation signed a 6 - year noncancelable lease for an equipment. The terms of the lease called
On EnterpriseCorporation signed a year noncancelable lease for an equipment. The terms of the lease called for Enterprise to make annual payments of $ at the beginning of each year, starting The equipment has an estimated useful life of years and a fair value at the inception the lease of $ The eqipment reverts to the lessor at the end of the lease term. Enterprise uses the straight line method of amortization for all its leased plant assets. Enterprise incremental borrowing rate is the same as the lease's implicit rate. The estimated residual value of the leased asset is $k There is no guaranteed residual value
Question:
Prepare an amortization table for the lease arrangement.
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