On $2$ January $20$X$1,$ Edwards Inc., a public company, entered into a five$-$year equipment lease with Sebro Leasing Inc. The lease calls for annual lease payments of $$161,000,$ payable at the beginning of each lease year. Edward$$s IBR is $7\%.$ Edwards does not know the lessor$$s interest rate. The fair value of the equipment is $$686,000.$ Edwards depreciates equipment on a straight$-$line basis, taking a full year$$s depreciation in the year of acquisition.

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ Prepare the lease liability amortization schedule for Edward. $2.$ Prepare the journal entries relating to the leased asset and the lease liability for $20$X$1$ and $20$X$2$ for Edwards. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$).3.$ What amounts will appear on Edward$$s statement of financial position and statement of comprehensive income as at $31$ December $20$X$1?$