The following facts pertain to a noncancelable lease agreement between Headland Leasing Company and Sage Company, a lessee. May 1, 2017 Inception date: Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's Incremental borrowing rate $21,751.90 $3,700 5 years 10 years 567,000 $93,000 10 % 10 % 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). Click here to view factor tables (c) Prepare a lease amortization schedule for Sage 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.) SAGE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus Interest on Reduction of Lease Liability Liability Date BPO Lease Liability 5/1/17 5/1/17 5/1/18 5/1/19 5/1/20 5/1/21 4/30/22