Wildhorse Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $230,000. The terms of the lease are as follows: The lease term begins on January 1, 2019, and runs for 5 years. The lease requires payments of $52,425 at the beginning of each year starting January 1, 2019. At the end of the lease term, the equipment is to be returned to the lessor. Lantus' implied interest rate is 7%, while Wildhorse's borrowing rate is 8%. Wildhorse uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assume that both companies follow ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Determine the present value of the minimum lease payments. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) $ 226063 Present Value Prepare Wildhorse's lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Date Payment Interest Principal B $ 52425 $ 0 52425 52425 13891 38534 January 1, 2019 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023 52425 10808 41617 52425 7479 44946 52425 3883 48542 $ 262125 $ 36062 $ 226063 Interest Principal Balance $ 226063 $ $ 0 $ 52425 173638 13891 38534 135104 10808 41617 93488 7479 44946 48542 3883 48542 i $ 36062 $ 226063