AC$3220$ Corp., who reports under ASPE, leases computer equipment on January $1,2023,$ and records this as a capital lease. Three annual lease payments of $$10,000$ are required the beginning of each year, starting January $1,2023.$ The interest rate for the lease $10\%.$ Title passes to AC$3220$ at the end of the lease.

AC$3220$ uses the effective interest method of amortization for the lease. The company uses straight$-$line depreciation over the equipment$$s expected useful life of three years, with no residual value.

Instructions $($Round values to the nearest dollar.$)$

a$)$ Calculate the present value of the lease payments

b$)$ Prepare a lease amortization table for $2023,2024,$ and $2025.$

c$)$ Prepare the general journal entries relating to this lease for $2023.$AC$3220$ Corp., who reports under ASPE, leases computer equipment on January $1,2023,$ and records this

as a capital lease. Three annual lease payments of $$10,000$ are required the beginning of each year,

starting January $1,2023.$ The interest rate for the lease $10\%.$ Title passes to AC$3220$ at the end of the

lease.

AC$3220$ uses the effective interest method of amortization for the lease. The company uses straight$-$line

depreciation over the equipment's expected useful life of three years, with no residual value.

Instructions $($Round values to the nearest dollar.$)$

a$)$ Calculate the present value of the lease payments

b$)$ Prepare a lease amortization table for $2023,2024,$ and $2025.$

c$)$ Prepare the general journal entries relating to this lease for $2023.$