A$.$ Calculate the amount of the annual rental payment requeired.

B$.$ Compute the value of the lease liability to the lessee.

C$.$ Prepare the journal entries Sheffield would make in $2025$ and $2026.$ One to record the lease, one to record the lease payment, and one to record amortization

D$.$ Prepare the lease amortization schedule

equipment to Tamarisk Corporati nuary 1, 1. to the lease agreement. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $489,000, and the fair value of the asset on January 1, 2025, is $699,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $60,000. Tamarisk estimates that the expected residual value at the end of the lease term will be $60,000. Tamarisk amortizes all of its leased equipment on a straight-line basis... The lease agreement requires equal annual rental payments, beginning on January 1, 2025. 4. 5. The collectibility of the lease payments is probable. 6. Sheffield desires a 9% rate of return on its investments. Tamarisk's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) Click here to view factor tables.