Assume that on January $1,2020,$ Elmer$$s Restaurants sells a computer system to Pharoah Finance Co$.$ for $$900,000$ and immediately leases the computer system back. The relevant information is as follows. $1.$ The computer was carried on Elmer$$s books at a value of $$820,000.2.$ The term of the non$-$cancelable lease is $3$ years; title will not transfer to Elmer$$s$,$ and the expected residual value at the end of the lease is $$670,000,$ all of which is unguaranteed. $3.$ The lease agreement requires equal rental payments of $$116,690$ at the beginning of each year. $4.$ The incremental borrowing rate for Elmer is $8\%.$ Elmer is aware that Pharoah Finance Co$.$ set the annual rental to insure a rate of return of $8\%.5.$ The computer has a fair value of $$900,000$ on January $1,2020,$ and an estimated economic life of $10$ years. Prepare the journal entries for both the lessee and the lessor for $2020$ to reflect the sale and leaseback agreement. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.$)$