Problem 21-01 The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Sage Company, a lessee. Commencement date January 1, Annual lease payment due at the beginning of each year, beginning with January 1, $104,738 Residual value of equipment at end of lease term, guaranteed by the lessee $54,000 Expected residual value of equipment at end of lease term $49,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, $584,000 Lessor's implicit rate 6 % Lessee's incremental borrowing rate 6 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 0 decimal places e.g. 5,275.) SAGE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Interest on Reduction of Lease Date Payment Plus GRV Liability Liability Lease Liability W20 $ _ 15 $ 1/1/20 \" 104738 444719 104738 \"\"22 I 104738 1/1/23 104738 1/1/24 104738 1/1/25 104738 1/1/21 12/31/26 633428 549458 Suppose Sage received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-ofuse asset be affected? Rig ht-ofuse asset 544457 Lease Liability (9 what if Sage prepaid rent of $5,000 to Faldo? _ Rig ht-ofuse asset