Prepare a spreadsheet for the Hercules lease problem showing the annual pay amounts with interest expense and Book Value. Use Excel and show your work.

On June 30, 2018, Hercule, Inc. leased warehouse equipment from Marble, Inc. The lease agreement calls for Hercule to make semiannual lease payments of $3,069,627 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018, Hercule's incremental borrowing rate is 12%, the same rate Marble used to calculate lease payment amounts. Marble manufactured the equipment at a cost of $15 million. (EV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)