Blossom, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $214152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a4 year useful life and no salvage value. If Blossom, Inc's incremental borrowing rate is 9% and the rate implicit in the lease (which is known by Blossom, Inc.) is 7%, what is the amount recorded for the leased asset at the lease inception? PV Annuity Due py Ordinary Annuity 7%, 4 periods 13.62432 3,38721 9% 4 periods 3.53129 3.23972 $693793 $776155 5756233 5725378 Sandhill Inc, a real estate developing company was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the percentage-of-completion method The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2019 2020 2021 Completed contract Percentage-of-completion $430000 $288000 730000 $146000 250000 359000 Which of the following will be included in the journal entry made by Sandhill to record the income effect? Adebit to Retained Earnings for $215400 Acredit to Retained Earnings for $144400 A debitto Retained Earnings for $144400 O A credit to Retained Earnings for $222600