The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Marin Company, a lessee.

Commencement date		May 1, 2020
Annual lease payment due at the beginning of
each year, beginning with May 1, 2020		$ 17,865.02
Bargain purchase option price at end of lease term		$ 7,000
Lease term		5	years
Economic life of leased equipment		10	years
Lessors cost		$ 65,000
Fair value of asset at May 1, 2020		$ 85,000
Lessors implicit rate		6	%
Lessees incremental borrowing rate		6	%

The collectibility of the lease payments by Cullumber is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

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Your answer is correct.

Discuss the nature of this lease to Marin.

The nature of this lease to Marin is a sales-typefinanceoperating lease.

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List of Accounts

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Your answer is correct.

Discuss the nature of this lease to Cullumber.

The nature of this lease to Cullumber is a financesales-typeoperating lease.

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List of Accounts

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Your answer is partially correct.

Prepare a lease amortization schedule for Marin for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.)