The following facts pertain to a non$-$cancelable lease agreement between Alschuler Leasing Company and Tamarisk Electronics, a

lessee, for a computer system.

Commencement date

Lease term

Economic life of leased equipment

Fair value of asset at October $1,2025$

Book value of asset at October $1,2025$

Residual value at end of lease term

Lessor's implicit rate

Lessee's incremental borrowing rate

Annual lease payment due at the beginning of

each year, beginning with October $1,2025$

October $1,2025$

$6$ years

$6$ years

$$354,500$

$$280,000$

$-0$

$9\%$

$9\%$

The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The

straight$-$line depreciation method is used for all equipment.

The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease.