The following facts pertain to a noncancelable lease agreement between Buffalo Leasing Company and Carla Company, a lessee.

Inception date:		May 1, 2017
Annual lease payment due at the beginning of
each year, beginning with May 1, 2017		$19,199.45
Bargain-purchase option price at end of lease term		$4,000
Lease term		5	years
Economic life of leased equipment		10	years
Lessors cost		$67,000
Fair value of asset at May 1, 2017		$84,000
Lessors implicit rate		9	%
Lessees incremental borrowing rate		9	%

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. The expected residual value of the equipment at the end of 5 (10) years is $12,000 ($0).

(c) Prepare a lease amortization schedule for Carla Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25126 and Round answers to 2 decimal places, e.g. 15.25.) CARLA COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus Interest on Reduction of Lease Liability Liability Date Lease Liability 5/1/17 5/1/17 5/1/18 5/1/19 5/1/20 5/1/21 4/30/22 SHOW LIST OF ACCOUNTS