Ayayai Corporation leased equipment to Kingbird, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,604 at the beginning of each year of the 2-year lease. The equipment has an economic useful life of 6 years, a fair value of $9,300, a book value of 57,300, and Ayayai expects a residual value of $6,800 at the end of the lease term. Ayayai set the lease payments with the intent of earning a 5% return, though Kingbird is unaware of the rate implicit in the lease and has an incremental borrowing rate of 7%. There is no bargain purchase option, cwnership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to vlew factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount of the rental payments used in the lease agreement? (Round answer to o decimal places, e.g. 5,275.) Rental payments Prepare the entries for Ayayal for 2020. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the recognition of the revenue) (To record depredation expense on the leased equipment) How would Ayayai's accounting in part a change if it incurred legal fees of $800 to execute the lease documents and S600 in advertising expenses for the year in connection with the lease? (Credit account titles are automatically lIndented when the amount is entered. Do not indent manually. Round answers to 0 decimat places, e.g. 5,275. Record journal entries in the order presented In the problem.) Date Account Titles and Explanation Debit Credit