On January 1, 2019, Yard Art leased a delivery truck from BTG. BTZ originally paid

$120,000 for the truck.

The lease agreement specified annual payments of $40,000 beginning January 1, 2019, the

inception of the lease, and at each December 31 through 2021. BTZ' interest rate for determining

payments was 11%. Yard Art's incremental borrowing rate is 12%. The estimated useful life of

the truck is 5 years with no salvage value. Both companies use straight-line depreciation.

At the end of the four-year lease term (December 31, 2022) the truck was expected to be

worth $30,000. Yard Art guaranteed a residual value of $10,000. A third party guarantor

Assurance Corporation guaranteed $10,000 and the rest was unguaranteed.

(1) What was the fair value of the truck on January 1, 2019?

(2) Prep an amortization table for BTZ. Use the following template.