FINANCIAL ACCOUNTING....................................................................................................................................

Railcar Leasing Inc. early adopts ASL' 2016-02 on January 1, 2017 Also, on January 1, 2017, Railcar Leasing Inc. (the lessor) purchased 10 used boxcars from Railroad Equipment Consolidators at a price of Railcar leased the boxcars to the Reading Railroad Company (the lessee) on the same date. The lease calls for eight annual payments of to be made at the beginning of each year (that is, the first payment is due at the inception of the lease on January 1, 2017). The boxcars have a nine-year remaining useful life, the lease contains no renewal or bargain purchase option, and possession of the boxcars reverts to the lessor at the lease's end. The lessor expects the boxcars to be worth at the end the lease term, but this value is not guaranteed by the lessee. The payment's collectibility is reasonably certain with no important uncertainties regarding unreimbursable costs to be incurred by the lessor. The lessor has structured the lease to earn a rate of return of Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: 2 Prepare an amortization schedule for the lease for Railcar.