a. The lease asset had a retail cash selling price of $117,000. Its useful life was six years with no residual value (straight-line depreciation). b. Annual lease payments at the beginning of each year were $24,473, beginning January 1. c. Lessor's implicit rate when calculating annual rental payments was 10%. d. Costs of $2,662 for legal fees for the lease execution were the responsibility of the lessor. Required: Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year-end under each of the following three independent assumptions: 1. The lease term is three years and the lessor paid $117,000 to acquire the asset (operating lease). 2. The lease term is six years and the lessor paid $117,000 to acquire the asset. Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 9%. 3. The lease term is six years and the lessor paid $91,000 to acquire the asset. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 The lease term is six years and the lessor paid $91,000 to acquire the asset prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) View transaction list Journal entry worksheet