Culver Incorporated leases a piece of equipment to Splish Brothers Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,402 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $26,900, a book value of $21,900, and both parties expect a residual value of $8.250 at the end of the lease term, though this amount is not guaranteed. Culver set the lease payments with the intent of earning a 5% return, and Splish Brothers is aware of this rate. 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 Culver and Splish Brothers. The lease is a/an lease to Culver The lease is a/an lease to Splish Brothers e Textbook and Media List of Accounts Prepare the lease amortization schedule(s) for Splish Brothers for all 4 years of the lease. (Round answers to decimal places, es 5,275.) SPLISH BROTHERS. CORRORATION SPLISH BROTHERS CORPORATION Lease Amortization Schedule Annuity-Due Basis Reduction of Lease Liability Date Annual Payment Interest on Liability Lease Liabilit 11/20 $ $ S $ V1/20 V1/21 11/22 11/23 Lease Expense Schedule Lease Expense (Straight-Line) Interest on Lease Liability Amortization of ROU Asset Carrying Val ROU Ass Date /11/20 $ $ 2/31/20 2/31/21 2/31/22 231/23 Prepare the journal entries for Splish Brothers for 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) > (To record lease payment) Suppose Splish Brothers incurs initial direct costs of $700 related to the lease. Prepare the journal entries for 2020. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment)