Bramble Corporation leased equipment to Marin, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,236 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $10,100, a book value of $8,100, and Bramble expects a residual value of $7,600 at the end of the lease term. Bramble set the lease payments with the intent of earning a 5% return, though Marin is unaware of the rate implicit in the lease and has an incremental borrowing rate of 7%. There is no bargain purchase option, ownership 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 view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Determine the nature of the lease to both Bramble and Marin. The lease is a/an lease to Marin. financing The lease is a/an lease to Bramble. operating eTextbook and Media List of Accounts Prepare all necessary journal entries for Marin in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Date Credit Right-of-Use Asset 1/1/20 3366 Lease Liability 3366 (To record the lease) 1/1/20 Lease Liability 1103 Cash 1103 (To record lease payment) 12/31/20 Right-of-Use Asset Cash Lease Liability eTextbook and Media List of Accounts How would the measurement of the lease liability and right-of-use asset be affected if, as a result of the lease contract, Marin was also required to pay $500 in commissions, prepay $700 in addition to the first rental payment, and pay $150 of insurance each year? (Round answers to 0 decimal places, e.g. 5,275.) Lease liability Right-of-use-asset $ eTextbook and Media List of Accounts Suppose, instead of a 3-year lease term, Marin and Bramble agree to a one-year lease with a payment of $1,236 at the start of the lease. Prepare necessary journal entry for Marin in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 %24 Bramble Corporation leased equipment to Marin, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,236 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $10,100, a book value of $8,100, and Bramble expects a residual value of $7,600 at the end of the lease term. Bramble set the lease payments with the intent of earning a 5% return, though Marin is unaware of the rate implicit in the lease and has an incremental borrowing rate of 7%. There is no bargain purchase option, ownership 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 view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Determine the nature of the lease to both Bramble and Marin. The lease is a/an lease to Marin. financing The lease is a/an lease to Bramble. operating eTextbook and Media List of Accounts Prepare all necessary journal entries for Marin in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Date Credit Right-of-Use Asset 1/1/20 3366 Lease Liability 3366 (To record the lease) 1/1/20 Lease Liability 1103 Cash 1103 (To record lease payment) 12/31/20 Right-of-Use Asset Cash Lease Liability eTextbook and Media List of Accounts How would the measurement of the lease liability and right-of-use asset be affected if, as a result of the lease contract, Marin was also required to pay $500 in commissions, prepay $700 in addition to the first rental payment, and pay $150 of insurance each year? (Round answers to 0 decimal places, e.g. 5,275.) Lease liability Right-of-use-asset $ eTextbook and Media List of Accounts Suppose, instead of a 3-year lease term, Marin and Bramble agree to a one-year lease with a payment of $1,236 at the start of the lease. Prepare necessary journal entry for Marin in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 %24