A Lessee insists on structuring a lease that will have the easier accounting result of an operating lease - that is, equal annual lease payments expensed as equal annual expenses. The equipment leased is an old Boeing 747. The Lessee is a Private Air Cargo company operating exclussively in the US. The Annual Lease Expense will be 10,000,000 The lease must be made at the beginning of each year. The lease term is four years. The lessor's implied rate is not known. As a result the lessee substitiutes its "incremental borrowing rate" for similar collateralized borrowings. The lessee's incremental borrowing rate is estimated to be 12%

Provide the lease expense schedule that is used to estimate the amortization of the right of use asset in an operating lease.