Crane Corporation is a machinery dealer whose shares trades on the TSX, and so it uses IFRS 16. Crane leased a machine to Ernst Ltd. on January 1, 2020. The lease is for a six-year period and requires equal annual payments of $24,766 at the beginning of each year. The first payment is received on January 1, 2020. Crane had purchased the machine for its inventory during 2019 for $99,400. Collectibility of lease payments is reasonably predictable, and no important uncertainties exist about costs that have not yet been incurred by Crane. Crane set the annual rental amount to ensure an 10% rate of return. The machine has an economic life of six years, with no residual value, and reverts to Crane at the termination of the lease. Using time value of money tables, a financial calculator, or Excel functions, calculate the amount of each of the following: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

1.

Gross investment

$enter a dollar amount

148596

2.

Unearned interest income

$enter a dollar amount

3.

Net investment in the lease

$enter a dollar amount Prepare all necessary journal entries for Crane for 2020.

3. Net investment in the lease SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare all necessary journal entries for Crane for 2020. (Credit account bites are automatically indented when the amount is en Gites and enter for the amounts. Round answers to o decimal places, ... 5,275.) Debit Credit Date Account Titles and Explanation 1/1/20 (To record inception of lease and cost of goods sold.) (To record interest.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT