Assume that on January 1, 2020, Elmer's Restaurants sells a computer system to Ivanhoe Finance Car for Information is as follows mediately leaves the computer system back. The relevant 1. The computer was carried on Elmer's books at a value of $780,000 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 $630,000, all of which is unguaranteed. 3. The lease agreement requires equal rental payments of $117,890 at the beginning of each year. 4. The incremental borrowing rate for Elmer is 6X Elmer is aware that Ivanhoe Finance Co set the annual rental to insure arate of return of 6% 5. The computer has a fair value of $860,000 on January 1, 2020, and an estimated economic life of 10 years Prepare the journal entries for both the leve and the lessor for 2020 to reflect the sale and leaseback agreement. (For calculation purposes, use decimal places as displayed in the factor toble provided and round answers to decimal places . 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.) Click here to view factor tables Debit Credit Date Account Titles and Explanation Elmer's Restaurants Lessee) (To record sale of equipment) (To record the lease) (To record lease payment)