a)Calculated gross amd net investment

The following facts are for a non-cancellable lease agreement between Sunland Corporation and Russell Corporation, a lessee: Inception date July 1, 2020 Annual lease payment due at the beginning of each year, starting July 1, 2020 $ 20,502.59 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell $ 3,500.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $ 55,600.00 Fair value of asset at July 1, 2020 $ 89,200.00 Lessor's implicit rate 9% 9% Lessee's incremental borrowing rate The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Sunland use IFRS 16. Prepare a lease amortization schedule using a computer spreadsheet for Sunland Corporation for the five-year lease term. (Round answers to 2 decimal places, eg. 52.75.) Sunland Leasing Corporation (Lessor) Lease Amortization Schedule Annual Lease Payment Plus PO Interest on Net Investment Net Investment Recovery Balance of Net Investme te $ 20 20 $ $ 21 $ 22 23 24 Prepare the journal entries to reflect the signing of the lease and to record the receipts and income related to this lease for the years 2020, 2021, and 2022. The lessor's accounting period ends on December 31, and Sunland Corporation does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 52.75.) Date Account Titles and Explanation Debit Credit 7/1/20 (To record lease and cost of goods sold.)