1) Rodgers Corporation agrees on January 1, 2019, to lease equipment from Packers, Inc. for 3 years. The lease calls for annual lease payments of $12,000 at the beginning of each year. The lease does not transfer ownership or contain a bargain purchase option, and is not a specialized asset. In addition, the economic life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Assume the implicit rate used by the lessor is 8%, and this is known to Rodgers. a) Prepare the PV of the payment b) Prepare the lease amortization schedule c) Prepare Rodgers' journal entries on January 1, 2019 (commencement of the operating lease), and on December 31,2019. 2) On December 31, 2018, Escapee ple leased machinery from Terminator Group for an agreed-upon lease term of 3 years. Escapee agreed to make annual lease payments of 17,000, beginning on December 31, 2018. The expected residual value of the machinery at the end of the lease term is E9,000, though Escapee does not guar borrowing rate is 6% and the implicit rate of the lease is unknown? antee any residual value to Terminator. If its incremental a. What amount will Escapee record as its lease liability on December 31, 2018. b. Prepare the lease amortization schedule c. Prepare Escapee' journal entries on December 31, 2018, December 31, 2019 and December 31, 2020. Escapee's fiscal year-end is December 31