Culver Corporation entered into a lease agreement on January 1, 2020, to provide Sunland Company with a piece of machinery. The terms of the lease agreement were as follows. 1. 2. 3 The lease is to be for 3 years with rental payments of $13,698 to be made at the beginning of each year, The machinery has a fair value of $64.000, a book value of $40,000, and an economic life of 8 years. At the end of the lease term, both parties expect the machinery to have a residual value of $30,000, none of which is guaranteed. The lease does not transfer ownership at the end of the lease term, does not have a bargain purchase option and the asset is not of a specialized nature. The implicit rate is 6%, which is known by Sunland, Collectibility of the payments is probable, 4 5. 6. Click here to view factor tables Evaluate the criteria for classification of the lease, and describe the nature of the lease. for the citisa ity of the payments is probable. Click here to view factor tables Evaluate the criteria for classification of the lease, and describe the nature of the lease. For the lessee. It is a and for the lessor, it is a e Textbook and Media List of Accounts Prepare the amortization schedules Sunland will use over the lease term SUNLAND COMPANY Lease Amortization Schedule Annuity-Due Basis Interest EN Reduction of Taullah Lease Liabil Prepare the amortization schedules Sunland will use over the lease term. SUNLAND COMPANY Lease Amortization Schedule Annuity-Due Basis Interest Reduction of on Liability Lease Liability te Annual Payment Lease Liability 120 20 $ $ $ 121 122 Lease Expense Schedule (0) Amortization of Right-of-Use Asset Heh BI A 122 Lease Expense Schedule (A) Straight-Line Expense B) Interest on Lease Liability 10 Amortization of Right-of-Use Asset (and Liability (A-3) Carrying Valu Right-of-Use $ $ 1 e Textbook and Media List of Accounts Prepare the 2020 journal entries for Sunland. (Credit account titles are automatically indented when the amount is entered Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Round present value factor calculations to 5 decimal places 1.25124 and the final answer to decimal placeres 58,971) Date Account Titles and Explanation Debit Credit Jan. 1 [To record lease) Jan. 1 (To record first lease payment) Dec. 31 (To record fease expense and amortization) Prepare the 2020 metres for Culver Credit unies are automatically indented when the amount Dometindent manually. If ne entry is required, select "No Entry for the count title and for the amounts found present offctar celelations to decimale 125124 and then werden Date Account Titles and Explanation Debit Credit to record) Dec 11 to record le revenue Tomcord depot e Te DOOK and Medo 3 - List of Accounts Suppose the lease were only for one year instead of 3 years, with just one lease payment at the beginning of the lease term. Prepare any journal entries Suntand would need, assumingit elects to use the short-term lease option. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts Rownd present value factor calculations to decimal places, c. 1.25124 and the final answer to decimal places 5. 58.971.) Date Account Titles and Explanation Debit Credit Jan. 1 eTextbook and Media List of Accounts Save for Last ved 32 minutes ago Sawarded Attempts of used Summer