The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Pronghorn Company, a lessee. January 1, 2017 $110,459 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, 2017 Residual value of equipment at end of lease term, guaranteed by the lessee Expected residual value of equipment at end of lease term Lease term Economic life of leased equipment Fair value of asset at January 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $50,000 $45,000 6 years 6 years $626,000 5% 5 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 5,275.) PRONGHORN COMPANY (Lessee) Lease Amortization Schedule Annual Lease Interest on Reduction of Lease Date Payment Plus GRV Liability Liability Lease Liability 1/1/17 592418 1/1/17 110459 481959 1/1/18 24098 1/1/19 110459 19780 1 395598 304919 209707 109733 1/1/20 110459 1 15247 1 1/1/21 110459 10485 1/1/22 11045977 5488 10497 12/31/22 5000 677541 Suppose Pronghorn received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset T 98737 What if Pronghorn prepaid rent of $5,000 to Faldo? Right-of-use asset 2 98737