Sax Company signs a lease agreement dated January 1, 2013, that provides for it to lease computers from Appleton Company beginning January 1, 2013. The lease terms, provisions, and related events are as follows: The lease term is 5 years. The lease is noncancelable and requires equal rental payments to be made at the end of each year. The computers have an estimated life of 5 years, a fair value of $300,000, and a zero estimated residual value. Sax agrees to pay all executory costs. The lease contains no renewal or bargain purchase option. The annual payment is set by Appleton at $83,222.92 to earn a rate of return of 12% on its net investment. Sax is aware of this rate, which is equal to its borrowing rate. Sax uses the straight-line method to record depreciation on similar equipment.

Prepare a table summarizing the lease payments and interest expense. Enter all amounts as positive numbers. If required, round your answers to two decimal places. Round your answers to the nearest cent and use the rounded answers in subsequent computations. If an amount is zero, enter "0". The spreadsheet as the following:

Lease Payment Required Interest Expense at 12% Obligation Balance Reduction of Lease Obligation Balance of Obligation

Jan 1, 2013 300,000

Dec 31, 2013 83,222.92 36,000 47,222.92 ?

Dec 31, 2014 83,222.92 ? ? ?

Dec 31, 2015 83,222.92 ? ? ?

Dec 31, 2016 83,222.92 ? ? ?

Dec 31, 2017 83,222.92 ? ? 0