Wildhorse Leasing Company leases a new machine to Blossom Corporation. The machine has a cost of $65,000 and fair value of $90,000. Under the 3-year, non-cancelable contract, Blossom will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2025. Wildhorse expects to earn an 8% return on its investment, and this implicit rate is known by Blossom. The annual rentals are payable on each December 31, beginning December 31, 2025.
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(b)
Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved.