Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2017. The lease agreement called for annual rental payments of $4,892 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $25,000, a book value of $20,000, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Rauch set the lease payments with the intent of earning a 5% return, and Donahue is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.

Prepare the lease amortization schedule(s) for Donahue for all 4 years of the lease. (Round answers to 0 decimal places, e.g. 5,275.) DONAHUE CORPORATION Annuity-Due Basis Date Annual Payment Interest on Liability Lease Liability Lease Liability Lease Amortization Schedule Reduction of 18214 4892 0 4892 13322 4892 4226 9096 4892 455 4437 4659 1/1/20 4892 233 4659 0 Lease Expense Schedule Lease Expense Interest on Amortization of Carrying Value of Date (Straight-Line) Lease Liability ROU Asset ROU Asset 18214 12/31/17 4892 4892 13322 12/31/18 4892 455 4226 12/31/19 4892 233 4437 12/31/20 4892 0 4659 0