A three-year lease was initiated on 1/1/20 for equipment costing $100,000 with a useful life of five years and fair value of $125,000. Three annual payments of $50,000 were due on 12/31/20, 12/31/21, and 12/31/22. The unguaranteed residual value at the end of the lease is estimated at $10,000. The implicit rate is 10%. 1. Prepare the journal entries that the lessee records on 1/1/20 and 12/31/20. Show your work. 2. Prepare the journal entries that the lessor records on 1/1/20 and 12/31/20. Show your work