The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee.

Lease Origination Date May 1, 2017

Annual lease payments due at the beginning of each lease year $20.471.94

Bargain purchase option price at the end of lease term $4,000

Lease term 5 years

Economic life of leased equipment 10 years

Lessors cost $65,000

Fair value of asset on May 1, 2017 $91,000

Fair value of asset on May 1, 2022 $15,000

Lessor implicit rate 8%

Lessees incremental borrowing rate 8%

The collectability of the lease payments is probable.

1. Prepare a lease amortization schedule for NextCar for the 5-year term.