Whiskey, Inc. for 4 years when that particular storage unit had a remaining useful life of 4 years. The fair value of the unit was $12,000 at the commencement of the lease on January 1, 2020. The present value of the four equal rental payments of $3,002 at the start of each year, plus the present value of a guaranteed residual value of $1,000, equals the fair value of $12,000, James’ implicit rate of return on the lease of 5%. The storage unit is expected to have no value at the end of the lease term. The following is an incomplete amortization schedule. Date Lease Payment Interest (at 5%) Reduction of Lease Balance of Lease
Receivable Receivable
1/1/20 $12,000
1/1/20
1/1/21
1/1/22
1/1/23
12/31/23
Totals
Complete the amortization schedule above.