Annual lease payments are $24,000 due on December 31 of each year, calculated by the lessor using a 7% discount rate. Assume that at the beginning of the third year, January 1, 2023, Rick's had made significant improvements to the truck whose cost could be recovered only if it exercises the extension option, creating an expectation that extension of the lease was "reasonably certain." The relevant interest rate at that time was 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry, if any, at the beginning of the third year for the lessee to account for the reassessment. 2. Prepare the journal entry, if any, at the beginning of the third year for the lessor to account for the reassessment. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry, if any, at the beginning of the third year for the lessee to account for the reassessment. (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 Record the improvements to the truck by Rick's. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2023 Record entry Clear entry View general journal TABLE 1 Future Value of $1 FV = $1(1 + i)" ni 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 0.0% 0.0% 11.0% 12.0% 20.0% 1 2 3 4 5 1.01000 1.02010 1.03030 1.04060 1.05101 1.01500 1.03022 1.04568 1.06136 1.07728 1.02000 1.04040 1.06121 1.08243 1.10408 1.02500 1.05063 1.07689 1.10381 1.13141 1.03000 1.06090 1.09273 1.12551 1.15927 1.03500 1.07123 1.10872 1.04000 1.08160 1.12486 1.04500 1.09203 1.14117 1.05000 1.10250 1.15763 1.05500 1.11303 1.17424 1.06000 1.07000 1.12360 1.14490 1.191021.22504 1.08000 1.16640 1.25971 1.09000 1.10000 1.18810 1.21000 1.295031.33100 1.11000 1.23210 1.36763 1.12000 1.25440 1.40493 1.20000 1.44000 1.72800 2.07360 2.48832 1.14752 1.18769 1.16986 1.21665 1.19252 1.24618 1.21551 1.27628 1.23882 1.30696 1.26248 1.33823 1.31080 1.40255 1.36049 1.46933 1.411581.46410 1.53862 1.61051 1.51807 1.68506 1.57352 1.76234 2.98598 6 7 8 9 10 1.06152 1.09344 1.07214 1.10984 1.08286 1.12649 1.09369 1.14339 1.10462 1.16054 1.12616 1.15969 1.19405 1.22926 1.26532 1.30226 1.34010 1.37884 1.41852 1.50073 1.14869 1.18869 1.22987 1.27228 1.31593 1.36086 1.40710 1.45468 1.50363 1.60578 1.17166 1.21840 1.26677 1.31681 1.36857 1.42210 1.47746 1.53469 1.593851.71819 1.19509 1.24886 1.30477 1.36290 1.42331 1.48610 1.55133 1.619091.68948 1.83846 1.21899 1.28008 1.34392 1.41060 1.48024 1.55297 1.62889 1.70814 1.79085 196715 1.58687 1.71382 1.85093 1.99900 2.15892 1.67710 1.82804 1.99256 2.17189 2.36736 1.77156 1.94872 2.14359 2.35795 2.59374 1.87041 2.07616 2.30454 2.55804 2.83942 1.97382 2.21068 2.47596 2.77308 3.10585 3.58318 4.29982 5.15978 6.19174 7.43008 11 12 13 14 15 1.11567 1.17795 1.24337 1.31209 1.38423 1.12683 1.19562 1.26824 1.34489 1.42576 1.13809 1.21355 1.29361 1.37851 1.46853 1.14947 1.23176 1.31948 1.41297 1.51259 1.16097 125023 1.34587 1.44830 1.55797 1.45997 1.53945 1.51107 1.60103 1.56396 1.66507 1.61869 1.73168 1.67535 1.80094 1.62285 1.71034 1.802091.89830 2.10485 2.33164 1.69588 1.79586 1.90121 2.01220 2.25219 2.51817 1.77220 1.88565 2.00577 2.13293 2.40985 2.71962 1.85194 1.97993 2.11609 2.260902.57853 2.93719 1.93528 2.07893 2.23248 2.39656 2.759033.17217 2.58043 2.81266 3.06580 3.34173 3.64248 2.85312 3.13843 3.45227 3.79750 4.17725 3.15176 3.47855 3.49845 3.89598 3.88328 4.36349 4.31044 4.88711 4.784595.47357 8.91610 10.69932 12.83918 15.40702 16 17 1.17258 1.18430 1.26899 1.28802 1.37279 1.40024 1.48451 1.52162 1.60471 1.65285 1.73399 1.79468 1.87298 1.94790 2.02237 2.11338 2.18287 2.35526 2.29202 2.48480 2.54035 2.69277 2.95216 3.15882 3.42594 3.97031 3.700024.32763 4.59497 5.05447 5.31089 6.13039 5.895096.86604 18 19 20 1.19615 1.30734 1.20811 1.32695 1.22019 1.34686 1.42825 1.55966 1.45681 1.59865 1.48595 1.63862 1.70243 1.75351 1.80611 1.85749 2.02582 2.20848 2.40662 2.62147 1.92250 2.10685 2.30786 2.52695 2.76565 1.98979 2.19112 2.41171 2.65330 2.91776 2.85434 3.02560 3.20714 3.379933.99602 3.61653 4.31570 3.86968 4.66096 4.71712 5.14166 5.60441 5.55992 6.11591 6.72750 6.54355 7.26334 8.06231 7.68997 8.61276 9.64629 18.48843 22.18611 26.62333 31.94800 38.33760 21 25 30 40 1.23239 1.36706 1.28243 1.45095 1.34785 1.56308 1.48886 1.81402 1.51567 1.67958 1.86029 2.05943 2.27877 2.52024 2.78596 3.07823 3.39956 4.14056 5.03383 6.10881 1.64061 1.85394 2.09378 2.36324 2.66584 3.00543 3.38635 3.813394.29187 5.42743 6.84848 8.62308 1.81136 2.09757 2.42726 2.806793.24340 3.74532 4.32194 4.98395 5.743497.61226 10.06266 13.26768 2.20804 2.68506 3.26204 3.95926 4.80102 5.81636 7.03999 8.51331 10.28572 14.97446 21.72452 31.40942 7.40025 8.94917 10.80385 10.83471 13.58546 17.00006 17.44940 22.89230 29.95992 45.25926 65.00087 93.05097 46.00512 9 5 39622 23737631 1469.77160 TABLE 2 Present Value of $1 $1 (1+i)" wi 1.0% 1.5% 1 0.99010 0.98522 2 0.98030 0.97066 3 0.97059 0.95632 4 0.96098 0.94218 5 0.95147 0.92826 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5,5% 6.0% 7.0% 8.0% 9.0% 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 0.85734 0.84168 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 0.79383 0.77218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 0.79209 0.76290 0.73503 0.70843 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.68058 0.64993 10.0% 11.0% 12.0% 20.0% 0.90909 0.90090 0.89286 0.83333 0.82645 0.81162 0.79719 0.69444 0.75131 0.73119 0.71178 0.57870 0.68301 0.65873 0.63552 0.48225 0.62092 0.59345 0.56743 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.33490 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.27908 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.23257 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.19381 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.46319 0.42241 038554 0.35218 0.32197 0.16151 11 0.89632 0.84893 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.13459 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.11216 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748 0.53997 0.50507 0.47257 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.07789 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.05409 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.04507 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38147 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.03756 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.03130 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 25 0.77977 0.68921 0.60953 0.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 033348 0.29157 0.25509 0.22332 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.02174 0.01258 0.01048 0.00607 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.23138 0.20064 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068