On January 1, 2018 Lima Leasing Company (LLC) acquired an airplane to be leased to LA Sky Company LLC paid $950,000 to acquirethe plane which is also its fair value. the lease terms follow Annual rental payments of $190,000 are due January 1 of each year beginning January 1 2018l There are no non-lease payments. The lease terms is 6 years There is neither a residual value or a purchase option The economic life of the asset is 8 years and the airplane is not specialized in nature The lease incremental borrowing rate is 8% and the lease does not know the lessors implicit rate LLC indicates that collectability of lease payments is reasonable assured LA Sky depreciates similar vehicle it owns using the straight-line method.

1 Prepare the journal entry to recognize the right to use asset and lease liability at commencement of the lease

2 Prepare the amortization table showing the annual interest expense and principal reduction. 3 What amount of amortization expense would be recognized each year for the leased asset?

I am stumped I can not figure out the formulas, I have the answers already but I do not know where I am wrong at in my calculations. Please show all work so I can figure out where I am wrong at???