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

Inception date:		May 1, 2017
Annual lease payment due at the beginning of
each year, beginning with May 1, 2017		$23,007.91
Bargain-purchase option price at end of lease term		$4,400
Lease term		5	years
Economic life of leased equipment		10	years
Lessors cost		$68,000
Fair value of asset at May 1, 2017		$97,000
Lessors implicit rate		11	%
Lessees incremental borrowing rate		11	%

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 Larkspur 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.)

LARKSPUR COMPANY (Lessee) Lease Amortization Schedule
Date		Annual Lease Payment Plus BPO		Interest on Liability		Reduction of Lease Liability		Lease Liability
5/1/17		$		$		$		$
5/1/17
5/1/18
5/1/19
5/1/20
5/1/21
4/30/22
		$		$		$