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The following facts pertain to a non-cancelable lease agreement between Carmichael Leasing Company and Banket Company, a lessee. Commencement date June 1, 2020 Annual lease payment beginning with June 1, 2020 $47,507.30 Bargain purchase option price at end of lease term $12,000 Lease term 4 years Economic life of leased equipment (no salvage value) 12 years Lessor's cost $161,000 Fair value of asset at June 1.2020 $184,000.00 Lessor's implicit rate (known to lessee) 6 % Lessee's incremental borrowing rate 6 % The collectibility of the lease payments by Carmichael is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is correct. Discuss the nature of this lease to Banket. The nature of this lease to Banket is a finance lease. e Textbook and Media List of Accounts Attempts: 1 of 3 used (b) Your answer is correct. Discuss the nature of this lease to Carmichael. The nature of this lease to Carmichael is a sales-type lease. Prepare a lease amortization schedule for Banket for the 4-year lease term. (Round answers to 2 decimal places, eg. 5,275.15.) BANKET COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus BPO Date Interest on Liability Reduction of Lease Liability Lease Liat 6/1/20 $ $ $ 0 $ 6/1/20 47507.30 0 47507.30 6/1/21 47507.30 8189.56 39317.740 6/1/22 47507.30 5830.50 41676.80 5 6/1/23 47507.30 3329.89 44177.41 5/31/24 12000 679.25 11320.75 S 2020292 $ 18029.2 $ 184000 +-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) BANKET COMPANY (Lessee) Lease Amortization Schedule Interest on Liability Reduction of Lease Liability Lease Liability 0 $ 0 $ 184000 0 47507.30 136492.70 8189.56 39317.740 97174.90 5830.50 41676.80 55498.160 3329.89 44177.41 11320.75 679.25 11320.75 0 18029.2 CA 184000 Date Account Titles and Explanation Debit Credit (To record the lease) (To record the first lease payment) (To record interest expense) (To record amortization of the right-of-use asset) (Reversing entry) (To record interest expense) 5 (To record amortization of the right-of-use asset)