Crane Corp. is a manufacturer of truck trailers. On January 1, 2021, Crane Corp. leases 11 trailers to Swifty Company under a 5-year noncancelable lease agreement. The following information about the lease and the trailers is provided:

1.		Equal annual payments that are due on January 1 each year provide Crane Corp. with an 10% return on net investment.
2.		Titles to the trailers pass to Swifty at the end of the lease.
3.		The fair value of each trailer is $52,800. The cost of each trailer to Crane Corp. is $46,200. Each trailer has an expected useful life of nine years.
4.		Collectibility of the lease payments is probable.

Calculate the annual lease payment.

Annual lease payment

$

Prepare a lease amortization schedule for Crane Corp. for the first three years.

Crane Corp. Lease Amortization Schedule (Lessor)
Date		Annual Lease Rental		Interest on Lease Receivable		Lease Receivable Recovery		Lease Receivable
1/1/21								$
1/1/21		$		$		$
1/1/22
1/1/23

Prepare the journal entries for the lessor for 2021 to record the lease agreement, the receipt of the lease rentals, and the recognition of revenue.

Date	Account Titles and Explanation	Debit	Credit
January 1, 2021December 31, 2021
	(To record the lease)
January 1, 2021December 31, 2021
	(To record receipt of the first lease payments)
January 1, 2021December 31, 2021