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agret leasing company signs anf agreement contract on Jan 12025. to lease an equipment to...

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Accounting

agret leasing company signs anf agreement contract on Jan 12025. to lease an equipment to Tarmsik Company.The following information relates to this agreement
1.The term of noncanceleable lease is 3 years with no renewable option.The e quipment has an estimated economic value of 5 years.
2. The fair value of the asset at Jan 1,2025 is $78000.
3.The asset will revert to the lessor at the end of the lease term at which the asset is expecteed to have a residual value of $70000, none of which is guartneed.
4.The agreement requires equal annual rental payments of $2486998 to the lessor, beginnign Jan 1,2005.
5.The lessees incremental borrowing rat is 5%.The lessor impliciate rate is 4% and is unknown to the lessee.
6.Tamarisk uses the straight line depreciation method for all equipment.
a) Prepare an amortization schedule that would be suitable for the lessee for the leasde term?

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