1 year. Carla Vista Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: The term of the noncancelable lease is 4 years, with no renewal option. Payments of $849.815 are due on July 1 of each The fair value of the equipment on July 1, 2021 is $3,080.000. The equipment has an economic life of 6 years with no salvage value Carla Vista depreciates similar machinery it owns on the sum-of-the-years-digits basis. The lessee pays all executory costs. Carla Vista's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 7% in computing the lease payments. 2. 3. 5. Prepare the journal entries on Carla Vista's books that relate to the lease agreement for the following dates: (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to decimal places eg. 5,250.) July 1, 2021 December 31, 2021. July 1, 2022 December 31, 2022 1. 2. 3. 4 Date Debit Account Titles and Explanation Lease Expense (To record amortization.) (To record interest payment.) (To record amortization.) (To record interest payment.)