Question 3 The following facts pertain to a noncancelable lease agreement between Marin Leasing Company and Healand Company, a lessee Inception dates May 1, 2017 Annual lease payment due at the beginning of each year beginning with May 1, 2017 $23,116.34 Bargain purchase option price at end of lease term $4,200 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $71,000 Fair value of asset at May 1, 2017 $99.000 Lessor's implitate 10 Lessee's incremental borrowing rate 10% The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. These assumes responsibility for all sectory costs. The expected residual value of the equipment at the end of 5 (10) years is $12.000 (50) Click here to vien factor tables Your answer is correct. Prepare a lease amortization schedule for Head and Company for the 5-year lease term (Hound present value factor calculations to decimal places 1.25126 and found answers to decinal paces. 15.25) HLACHLAND COMPANY (Lessee) Lease Amortization Schedule Anal Lease Payment Plus Interest on Reduction of late Date BPO Liability Liability Lease Liability 5/1/17 99000 7503.60 5/1/17 23116.34 G355.60 15527.97 75633 20116.30 5/1/18 1700073 5/1/19 43314 15.52 23116.14 23116.14 5/1/20 18. TAD 20667.73 18. 5/1/20 23116.14 4/30/22 3818 4700 VIIMAMO (To record the first le payment) 5/1/18 (To To record interest.) (To record depreciation) 5/1/18 (To record interest.) To record depreciation) SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts of used SAVE FOR LATER O E there to search (d) CALCULATOR Prepare the journal entries on the lessee's books to reflect the signing of the lease wreement and to record the payments and expenses related to this for the year 2017 2018. Headed anal conting period and December 31. Reversing entries are used by Headland. (Credit account titles are automatically indented when amount is entered. Do not inde manual entry is required select a try for the acties and enter for the amounts. Hound present value factor calculations to decimal places 1.25121 and Round answers to decimal places, S.S.) Account Thies and Explanation Det Credit 5/1/17 To record the dy 5/1/18 (To To record