2.

n 01/01/2020, the company signed a contract to provide equipment (A) to Malik Company for 7 years. The useful life for this equipment is 10 years. Malik Company will pay $ 20000 at the end of each year during the period. The interest rate is 10 percent, and at the end of the period, the company is expected that the Malik Company will own this equipment. The cash selling price for this equipment is $ 97,368.4.

Required: Accounting transaction entry in LESSOR BOOKS () on 01/01/2020 is: