The document describes a 12-year finance lease agreement with quarterly payments of $6,379 at an annual interest rate of 12%. The present value of the lease is $166,000. It asks to prepare a partial amortization table up to the October 1 payment and calculate the interest expense/revenue for the lessee/lessor from the second quarterly payment on that date.

1. A finance lease agreement calls for quarterly lease payments of $6,379 over a 12 -year lease
term, with the first payment on July 1 , the beginning of the lease. The annual interest rate is
12%. Both the present value of the lease payments and the cost of the asset to the lessor are
$166,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What
would be the amount of interest expense (revenue) the lessee (lessor) would record in
conjunction with the second quarterly payment on October 1 ? Complete this question by
entering your answers in the tabs below. Prepare a partial amortization table up to the October 1
payment. Note: Enter all amounts as positive values. Round your answers to the nearest whole
dollar.
A finance lease agreement calls for quarterly lease payments of $6,379 over a 12 -year lease
term, with the first payment on July 1 , the beginning of the lease. The annual interest rate is
12%. Both the present value of the lease payments and the cost of the asset to the lessor are
$166,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What
would be the amount of interest expense (revenue) the lessee (lessor) would record in
conjunction with the second quarterly payment on October 1 ? Complete this question by
entering your answers in the tabs below. What would be the amount of interest expense
(revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on
October 1 ? Note: Enter all amounts as positive values. Round your answers to the nearest whole
dollar.