Crane Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2022. The lease is for an 8-year period and requires equal annual payments of $25,064 at the beginning of each year. The first payment is received on January 1, 2022. Crane had purchased the machine during 2021 for $144.000. Collectibility of lease payments by Crane is probable. Crane set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crane at the termination of the lease. Click here to view factor tables. (a) Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.) Amount of the lease receivable ppose the collectibility of the lease payments was not probable for Sunland. Prepare the necessary journal entry for the mpany in 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit /1/22 Cash Deposit Liability eTextbook and Media Solution If the collectibility of lease payments is not probable for the lessor, the lessor does not derecognize the asset or recognize selling profit on the lease. Instead, Sunland would recognize any cash receipts as a deposit liability. A lessor does not derecognize the asset and recognize selling profit until collectibility becomes probable. List of Accounts 1/22 /31/22 Lease Receivable. Cost of Goods Sold Sales Revenue Inventory (To record the lease) Cash Lease Receivable (To record the first lease payment) Lease Receivable Interest Revenue 10