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Lamplighter Company, the lessor, agrees to lease equipment to Tilson Company, the lessee, beginning January 1, 2016. The lease terms, provisions, and related events are as follows . The lease is noncancelable and has a term of 8 years The annual rentals are $32,000, payable at the end of each year. Tilson agrees to pay all executory costs. " The interest rate implicit in the lease is 14% .The cost of the equipment to the lessor is $110,000 . The lessor incurs no material initial direct costs. . The collectibility of the rentals is reasonably assured, and there are no important uncertainties surrounding the amount of unreimbursable costs yet to be incurred by the lessor .The lessor estimates that the fair value at the end of the lease term will be $20,000 and that the economic life of the equipment is 9 years Lease Payment Received Interest Revenue at 14% on Net Investment Reduction of Net Unearned Date Lease Receivable Net Investment Investment Interest: Leases 2January 1,2016 3 December 31,2016 4 December 31,2017 5 December 31,2018 6 December 31, 2019 7 December 31,2020 8 December 31,2021 9 December 31,2022 10 December 31,2023 $32,000.00 32,000.00 32,000.00 32,000.00 32,000.00 32,000.00 32,000.00 32,000.00 $10,236.32 11,669.41 13,303.13 15,165.56 17,288.74 19,709.17 22,468.45 145,218.51 133,549.10 120,245.97 105,080.41 68,082.50 45,614.05

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