Packard Bell leases a variety of equipment to customers worldwide. On January 2, 2015, Packard Bell leased a Robot Router Machine (Equipment) to Southwestern Bell. Characteristics of the lease is listed below: * The lease is not cancelable * The lease term is nine years * Cost of Robot Router Machine (Equipment) is $425,148 * Southwestern Bell depreciates similar assets on a straight-line basis * Rental payments are $50,000 on a semi-annual basis payable in advance (January 1 and July1) * There is an additional $3,000 in executory costs in each semi-annual payment * The estimated useful life of the Robot Router Machine (Equipment) is 15 years * The is an $85,000 estimated unguaranteed salvage value * The annual implicit interest rate is 14% * The sales price of Robot Router Machine (Equipment) is not given. You must compute the sales price * Packard Bell pays the Executory Costs on December 31 of each year to the appropriate authority

Requirements:

What is the interest revenue to be recognized by the lessor for the period ending December 31, 2017?

What is the interest expense to be recognized by the lessee for the period ending December 31, 2017?

What is the reduction in lease payable to be recognized by the lessee for the payment on July 1, 2019?

You are to type your answer in the following format - if your computation is $11,581.15 the type $11,581, if your computation is $11,581.50 the type $11,582. You are to round your answer up for anything that is $.50 and above. It is best to get this answer from the lease amortization schedule. Round all calculations to the nearest dollar. You are also required to utilize the time value tables from the textbook. Do not compute the answers with a financial calculator as if your computations are not within +/- $2 of my solution then you will not receive any credit.