Recording Entries for Finance Lease-No Residual, Renewal Terms On January 1, 2020, Lessee Inc. enters into a 5-year equipment lease agreement for $33,000 annually (first payment due immediately). The lease grants the lessee an option to renew the lease for an additional 3 years. Lease payments adjust to current market rates for equivalent rentals at the time of renewal. Lessee Inc. is reasonably certain that it will exercise the renewal option due to the customization of the equipment. The estimated useful life of the equipment is 10 years. The lessee is not aware of the implicit rate of the lease, but the lessee's incremental borrowing rate is 64. 3. How would Lessee Inc classify the couipment lease? Amortization Schedule Journal Entries b. Prepare an amortization schedule of the lease liability. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Note: Include any net rounding difference to Lease Liability in the Interest on Liability amount for Jan. 1, 2027. Lease interest Reduction of Date Payment on Liability Lease Liability Lease Liability Jan. 1 .1.2020 $ Jan. 1. 2020 $ Jan 1, 2021 Jan 1, 2021 lar. 1.2022 Jarac lar. 1. 2023 Jar. 1.2023 lar. 1. 2024 Jan. 1.2024 lar. 1 2025 Jan 1, 2026 Jan 1, 2027 Total $