Anthony$$s Ristorante has served award$-$winning, traditional Italian dishes, including pasta, steak, veal, ossobuco, saltimbocca, and seafood, using recipes that were handed down by Anthony$$s grandmother and that are still prepared the way they were nearly $50$ years ago. On January $1,2004,$ Anthony decided to open a second location and leased restaurant space from Fauci Properties under a $20-$year lease agreement. The lease agreement specified annual payments of $$50,000$ beginning January $1,2004,$ the beginning of the lease, and on each December $31$ thereafter through $2022.$ The leased property had been acquired by Fauci at a cost of $$625,000($its fair value$)$ and when it was expected to have a remaining useful life of $30$ years. Fauci calculated the lease payments to provide an $8\%$ return on its investment. By this arrangement, the lease was deemed to be an operating lease.

On December $31,2020,$ Anthony$$s was barely able to make its $2020$ lease payment $($for $2021)$ as a result of the impact of COVID$-19$ on Anthony$$s operations. Anthony$$s asked for, and received, a deferral of the next two years lease payments $(2021$ and $2022)$ until December $31,2023,$ with the addition of three years to the lease term. The new payment schedule is:

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The market rate of interest at the time was $6\%.$ The present value of the new payments was $$202,911$ on December $31,2020,$ at which time the fair value of the restaurant space was $$210,000.$

Required:

Assuming that both companies choose the option under the CARES Act to not reclassify the lease from an operating lease:

Prepare the appropriate entries for Anthony$$s Ristorante on December $31,2020,$ to adjust its lease liability for the lease modification.

Prepare all appropriate entries for Fauci Properties on December $31,2020,$ to record the lease modification.

Prepare all appropriate entries for Anthony$$s Ristorante on December $31,2021,$ related to the lease.

Prepare all appropriate entries for Fauci Properties on December $31,2021,$ related to the lease.