5. (8 points) Norway Corporation leases equipment from Nova Scotia Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 5 years of the equipment's 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Prepare Norway's journal entries on January 1, 2020, and December 31, 2020. Assume the annual lease payment is $35,000 at the beginning of each year, and Norway's incremental borrowing rate is 8%, which is the same as the lessor's implicit rate. (hint: operating lease. 1/1/20 is lease inception and first lease payment. 12/31/20 is lease expense) Lease Inception Entry - 1/1/20 Accounts Debit Credit First Lease Payment Entry - 1/1/20 Accounts Debit Credit Lease Expense Entry - 12/31/20 Accounts Debit Credit Lease Expense Entry- 12/31/21 Accounts Debit Credit