The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Flounder Company, a lessee. January 1, $121,803 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1 Residual value of equipment at end of lease term. guaranteed by the lessee Expected residual value of equipment at end of lease term Lease term Economic life of leased equipment Fair value of asset at January 1. Lessor's implicitate Lessee's incremental borrowing rate $46,000 $41,000 6 years 6 years $623,000 9 % 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 Click here to view factor tables (a) Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessen for the lease term. (Round present value factor calculations to 5 decimal places, eg, 1.25124 and the final answers to decimal places 68. 5.275.) FLOUNDER COMPANY (Lessee) Lease Amortization Schedule nnual Lease Reduction of Lease nent Plus GRV Liability Liability Lease Liability Interest on 121803 121803 121003 121000 121803 121803 131803 $ $ e Textbook and Media the amounts on Date Debit Credit Account Titles and Explanation Leased Equipment Jan 1.2020 Lease Liability (To record the lease.) Lease Liability Jan 1, 2020 Cash (To record first lease payment.) Interest Expense Dec 31, 2020 Dec 31, 2020 Lease Liability (To record interest.) Depreciation Expense Accumulated Depreciation Lased Equipment (To record amortization) Lease Liability Jan. 1. 2021 Cash (To record second lease payment.) Interest Expense Dec 31, 2021 Las Liability (To record interest.) Dec 31, 2021 Depreciation Expense Accumulated Depreciation Leased Equipment cardamodation PA Your answer is incorrect Suppose Flounder received a lease incentive of $5.000 from Faldo Lessing to enter the lease. How would the initiat measurement of the lease liability and right-of-use asset be affected? Right-of-use assets Lease Liability $ What if Flounder prepaid rent of $5,000 to Faldo? Right-of-useet $ Les Liability $