TABLE 14A.2 Present Value of an Annuity of 1 Period Rate 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 2 3 0.9709 1.9135 2.8286 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 4 3.7171 5 6 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 4.5797 5.4172 6.2303 7.0197 7.7861 0.9259 0.9174 0.9091 0.8929 0.8696 1.7833 1.7591 1.7355 1.6901 1.6257 2.5771 2.5313 2.4869 2.4018 2.2832 3.3121 3.2397 3.1699 3.0373 2.8550 3.9927 3.8897 3.7908 3.6048 3.3522 4.6229 4.4859 4.3553 4.1114 3.7845 5.2064 5.0330 4.8684 4.5638 4.1604 5.7466 5.5348 5.3349 4.9676 4.4873 6.2469 5.9952 5.7590 5.3282 4.7716 7 8 6.7282 7.6517 8.5660 6.4720 7.3255 8.1622 6.0021 6.7327 7.4353 9 10 11 12 13 14 15 16 17 18 19 20 25 30 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.0188 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.8052 6.4951 5.9377 5.2337 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 5.4206 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.5831 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 5.7245 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 5.8474 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 5.9542 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.2497 6.1280 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.1982 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.2593 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 6.4641 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.0552 6.5660 29.4086 24.9986 21.4872 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.2438 6.6418 35 40 On December 31, 2020, a day when the available interest rate was 8%, Valcent Products Inc. leased equipment with an six-year life. The contract called for an $8,800 annual lease payment at the end of each of the next five years, with the equipment becoming the property of the lessee at the end of that period. Use TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare entries to record (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) a. the leasing of the equipment, b. depreciation expense for 2021 assuming straight-line and a zero residual value, c. the December 31, 2021, lease payment, including the recognition of interest expense on the lease liability on December 31, 2021. View transaction list Journal entry worksheet Record the lease of equipment. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31, 2020 Record entry Clear entry View general journal 2. Prepare an amortization schedule for the lease liability. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Year Beginning Net Liability Payment Interest Expense Reduction in Lease Liability Lease Liability at End of Year 2021 2022 2023 2024 2025 0 Total expense $ 0 $ 0 $ 0