On January $1,2024,$ NRC Credit Corporation leased equipment to Brand Services under a finance$/$sales$-$type lease designed to earn NRC a $12\%$ rate of return for providing long$-$term financing. The lease agreement specified the following:

Ten annual payments of $$74,000$ beginning January $1,2024,$ the beginning of the lease and each December $31$ thereafter through $2032.$

The estimated useful life of the leased equipment is $10$ years with no residual value. Its cost to NRC was $$411,336.$

The lease qualifies as a finance lease$/$sales$-$type lease.

A $10-$year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as required. Payments of $$9,000$ per year are specified, beginning January $1,2024.$ NRC was to pay this cost as incurred, but lease payments reflect this expenditure.

A partial amortization schedule, appropriate for both the lessee and lessor, follows:

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

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