Business, 07.05.2021 19:40 faithlopez209

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2. The fair value of the asset at January 1, 2020, is $79,000.
3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $9,000, none of which is guaranteed.
4. The agreement requires equal annual rental payments of $24,288.56 to the lessor, beginning on January 1, 2020.
5. The lessee’s incremental borrowing rate is 4%. The lessor’s implicit rate is 3% and is unknown to the lessee.
6. Tamarisk uses the straight-line depreciation method for all equipment.
Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e. g. 5,265.)

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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company....

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