The following facts pertain to a non$-$cancelable lease agreement between Crane Leasing Company and Larkspur Company, a lessee.

Commencement date

May $1,2025$

Annual lease payment due at the beginning of

each year, beginning with May $1,2025$

$$17,224\mathrm{.}80$

Bargain purchase option price at end of lease term

$$4,000$

Lease term

$5$ years

Economic life of leased equipment

$10$ years

Lessor's cost

$$55,000$

Fair value of asset at May $1,2025$

$$79,899\mathrm{.}67$

Lessor's implicit rate

$6\%$

Lessee's incremental borrowing rate

$6\%$

The collectibility of the lease payments by Crane is probable.

Click here to view factor tables.

$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

LARKSPUR COMPANY $($Lessee$)$ Lease Amortization Schedule

Annual Lease Payment Plus

Interest on Liability

$ $q,$

$\frac{i}{1}\frac{?}{25}$

i$/1/26$

i$/1/27$

i$/1/28$

i$/1/29$

$\frac{t}{30}\frac{?}{30}$

Reduction of Lease Liability

Lea: $q,q,q,$

$

$ $q,q,q,q,q,q,q,q,$

$ $$

$ $q,q,q,q,q,q,q,$

$

$ $q,q,q,q,q,$