Problem 21A-16 b-e (Part Level Submission) Blue Corporation entered into a lease agreement on January 1, 2017, to provide Crane Company with a piece of machinery. The terms of the lease agreement were as follows. 1. The lease is to be for 3 years with rental payments of $13,500 to be made at the beginning of each year. 2. The machinery has a fair value of $64,000, a book value (depreciable base for the lessor) of $40,000, and an economic life of 8 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of $25,000, none of which is guaranteed. 4. The lease does not transfer ownership at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature. 5. The implicit rate is 6%, which is known by Dawkins 6. Collectibility of the payments is probable. Click here to view the factor table. (b) Prepare the amortization schedules Crane will use over the lease term. CRANE COMPANY Lease Amortization Schedule Annuity-Due Basis Interest Reduction of Annual Payment on Liability Lease Liability Date Lease Liability 1/1/17 1/1/17 1/1/18 1/1/19 Click if you would like to Show Work for this question: Open Show Work