BE21-2 (Lo2) Jelly Co. procusses jam and sells it to the public. Jell Squishy, Inc. This year, Jelly leases a new piece of equipment from Squishy. The lease term is 5 years and requires equal rental payments of $15,000 at the beginning of each year. In addition, there is a renewal aption to allow Jelly to keep the equipment one extra year for a payment at the end of the fifth year of S10,000 (which Jelly is ruasonably curtain it will exercise). The equipment has a fair value at the commencement of the lease of $76,024 and an estimaled useful life of 7 years.Squishy set the annual rental to earn a rate of return of 5%, and this fact is known to Jelly. The lease does not transfer till, does not contain a bargain purchase option, and the equipment is not of a specialized nature. How should Jelly classily this lease? y leases equipment used in its production processes from BE21-3 (Lo2) Samson Company leases a building and land. The lease term is 6 years and the annual fixed $800,000. The lease arrangement gives Samson the right to purchase the building and land for S11,000,000 at the end of the lease. Based on an cconomic analysis of the lease at the commencement dale, Samson is reasonably certain that the fair value of the leased assels at the end of lease term will be much higher than $11,000,000. What are the total lease payments in this lease arrangement? payments are