On January 1, 2016, Yard Art Landscaping leased a delivery truck from Branch Motors. Branch originally paid $70,000 for the truck.

The lease agreement specified annual payments of $25,000 beginning January 1, 2016, the inception of the lease, and at each December 31 through 2018. Branch Motors interest rate for determining payments was 12%. Yard Arts incremental borrowing rate is 13%. The estimated useful life of the truck is ten years with no salvage value. Both companies use straight-line depreciation.

At the end of the four-year lease term (December 31, 2019) the truck was expected to be worth $18,000. Yard Art guaranteed a residual value of $8,000. A third party guarantor Assurance Corporation guaranteed $5,000 and the rest of $5,000 was unguaranteed.

Find the fair value of the truck on January 1, 2016 and prepare amortization tables for Branch Motors.