*7 *TR18-5 Finance LeaseLessor: On 1 January 20x1, Canada Leasing Inc. acquired an asset on behalf of Magnum Ltd. for $1DD,CICIU. Canada Leasing and Magnum enter into a sixyear lease for the asset, effectiye 1 January 20x1, with equal payments at the beginning of each lease year. Canada Leasing will earn 8% {before taxes) on the lease. Canada Lease has a 31 December fiscal yearend. Canada Leasing Inc. uses the gross method of recording nance leases. Iconnect Required: 1. Determine the amount of each lease payment. 2. Make the journal entries that would appear in Canada Leasing lnc.'s accounts for 20321, 20x12, and 20x3, using the net method of recording. 3. Repeat requirement 2, but use the gross method of recording the lease. 4. What amountis) relating to the lease will be shown on Canada Leasing lnc.'s SFP on 31 December 20x3