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Bramble Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Sunland Medical Center for a period of 10 years. The normal selling price of the machine is $509,768, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,500. The hospital will pay rents of $61,700 at the beginning of each year, Bramble incurred costs of $258,000 in manufacturing the machine and $13,700 in legal fees directly related to the signing of the lease. Bramble has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Sunland Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of 10,000. Click here to view factor tables Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, c.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Initial Lease Liability Prepare a 10-year lease amortization schedule. (Round answers to 0 decimal places e.g.5,275.) SUNLAND HEDICAL (Lessee) Schedule Lease (Annulty Due Basis, GRV) Interest onReduction of Lease Lease Beginning Annual Lease Payment Plus GRV Unpaid Liability Liability of Year nitial PV 10 End of 10 Prepare all of the lessee's journal entries for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to O decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the lease of x-ray equipment using finance lease method.)

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