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

Commencement date		January 1,
Annual lease payment due at the beginning of each year, beginning with January 1,		$118,626
Residual value of equipment at end of lease term, guaranteed by the lessee		$54,000
Expected residual value of equipment at end of lease term		$49,000
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at January 1,		$641,000
Lessors implicit rate		7	%
Lessees incremental borrowing rate		7	%

The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to o decimal places e.g. 5,275.) IVANHOE COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Annual Lease Payment Plus GRV Date Lease Liability 1/1/20 641,000 1/1/20 118,626 118,626 522374 1/1/21 118,626 36566 82060 440,314 x 1/1/22 118,626 30822 87804 352510 1/1/23 118,626 24676 93950 258560 1/1/24 118,626 18099 100527 158033 1/1/25 118,626 11062 107565 50469 X X 12/31/26 54,000 3531 50469 X X 765,756 124,756 641,000