Problem 21-08 Pharoah Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Novak Medical Center for a period of 10 years. The normal selling price of the machine is $539,066, and its guaranteed residual value at the end of the non-cancelable lease term is estimated $17,000. The hospital will pay rents of $65,200 at the beginning of each year. Pharoah incurred costs of $267,000 in manufacturing the machine and $14,500 in legal fees directly related to the signing of the lease. Pharoah has determined that the collectibility of the lease payments is and that the implicit interest rate is 5%. Novak Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of $10,000. Click here to view factor tables. Discuss the nature of this lease in relation to the lessee. The nature of this lease in relation to the lessee is Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 5,275.) Initial Lease Liability s SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a 10-year lease amortization schedule. (Round answers to o decimal places e.g. 5,275.) NOVAK MEDICAL (Lessee) Lease Amortization Schedule (Annuity Due Basis, GRV) Interest on Reduction of Lease Unpaid Liability Liability Beginning of Year Initial PV Annual Lease Payment Plus GRV Lease Liability End of 10