MODULE $12$ GRADED ASSIGNMENT

Question $9$

Oriole Leasing Company leases a new machine to Pharoah Corporation. The machine has a cost of $$65,000$ and fair value of $$92,500.$ Under the $3-$year, non$-$cancelable contract, Pharoah 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 $1,2025.$ Oriole expects to earn an $8\%$ return on its investment, and this implicit rate is known by Pharoah. 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. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places e$.$g$.5,275.)$

$\backslash$table$[[$Date$,$Rent Receipt$/$ Payment,Interest $(8\%)$ Revenue$/$ Expense,Reduction of Principal,Receivable$/$ Liability$],[\frac{1}{1}\frac{?}{25},$$$,$$$,$$$,$$$],[\frac{12}{31}\frac{?}{25},,,,],[\frac{12}{31}\frac{?}{26},,,$sontas,$],[\frac{12}{31}\frac{?}{27},,,,]]$