Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 5,275.)

Please explain how interest liability column is calculated.

The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Martinez Company, a lessee. Commencement date January 1, Annual lease payment due at the beginning of each year, beginning with January 1, $121,571 Residual value of equipment at end of lease term, guaranteed by the lessee $54,000 Expected residual value of equipment at end of lease term $49,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, $641,000 Lessor's implicit rate 8 % 8 % Lessee's incremental borrowing rate The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables