Write down ten year lease amortization schedule for lease

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Crane Corporation manufactures specialty equipment with an estimated economic life of 12 years and leases it to Pina Colada Airlines Corp. for a period of 10 years. Both Crane and Pina Colada Airlines follow ASPE. The equipment's normal selling price is $202,070 and its unguaranteed residual value at the end of the lease term is estimated to be $15,200. Pina Colada Airlines will make annual payments of $24,900 at the beginning of each year and pay for all maintenance and insurance. Crane incurred costs of $105,200 in manufacturing the equipment and $7,080 in negotiating and closing the lease. Crane has determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 9%.

Problem 1: Write down 10-year lease amortization schedule for the lease obligation using Excel

Reference no: EM132770304

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