Using the following facts, determine the lease amortization table

Lease period 5 years beginning January 1, 2013.

Noncancelable

Rental amount $65,000 per year, payable in advance. Includes $5,000 to cover property taxes (PMT = $60,000, N = 5, I = 10%= $250,192)

Estimated economic life of equipment 10 years

Expected residual value of the equipment at the end of the lease period: None

Bargain purchase option:$75,000 BPO exercisable after 5 years. (FV = $75,000, N = 5, I = 10%=46,569)

The economic life of the equipment is expected to be 10 years.

Required from the perspective of the lessee under ASC 840:

Prepare the entries that would be recorded at the initiation of the lease, and for 2013.

Prepare the entries assuming the lessee exercises the bargain purchase option

Prepare the entries assuming the lessee chooses not to exercise the bargain purchase option