Berne Company (lessor) enters into a lease with Fox Company to lease equipment to Fox beginning January 1, 2019. The lease terms, provisions, and related events are as follows:

1.	The lease term is 4 years. The lease is noncancelable and requires annual rental payments of $50,000 to be made at the end of each year.
2.	The equipment costs $130,000. The equipment has an estimated life of 4 years and an estimated residual value at the end of the lease term of zero.
3.	Fox agrees to pay all executory costs directly to a third party.
4.	The interest rate implicit in the lease is 12%.
5.	The initial direct costs are insignificant and assumed to be zero.
6.	The collectability of the rentals is reasonably assured.

Required:

1.	Next Level Assuming that the lease is a sales-type lease from Bernes point of view, calculate the selling price and assume that this is also the fair value.
2.	Prepare a table summarizing the lease receipts and interest income earned by Berne.
3.	Prepare journal entries for Berne, the lessor, for the years 2019 and 2020.