Prepare a 10-year lease amortization schedule showing the Annual Lease Payment Plus GRV, Interest on Unpaid Liability, Reduction of Lease Liability, and the Lease Liability.

Sweet Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Pharoah Medical Center for a period of 10 years. The normal selling price of the machine is $496,611, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,200. The hospital will pay rents of $60,100 at the beginning of each year. Sweet incurred costs of $270,000 in manufacturing the machine and $14,100 in legal fees directly related to the signing of the lease. Sweet has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Pharoah Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of $10,000