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

Commencement date		January 1,
Annual lease payment due at the beginning of each year, beginning with January 1,		$119,947
Residual value of equipment at end of lease term, guaranteed by the lessee		$51,000
Expected residual value of equipment at end of lease term		$46,000
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at January 1,		$631,000
Lessors implicit rate		8	%
Lessees incremental borrowing rate		8	%

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.

Your answer is partially correct. Try again. Suppose Marin received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset 597,012 Lease Liability What if Marin prepaid rent of $5,000 to Faldo? 607,012 Right-of-use asset Lease Liability Click if you would like to Show Work for this question: Open Show Work Your answer is partially correct. Try again. Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit n. 1, 2020 Pan. 1, 202000 Dec 31, 2020 (To record first lease payment.) L (To record interest.) Dec 31, 2020 $100,335 (To record amortization Jan. 1, 2021 OD (To record second lease payment Dec 31, 2021 (To record interest Dec 31, 2021 91 $100,335 Your answer is partially correct. Try again. decimal places 1.25124 and the final answers to decimal places. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5,275.) MAMEN COMPANY LOBB Lense Amortization Schedule Payment Plus GRV Date 1/1/20 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 12/31/26