DO NOT GIVE ME AN INCOMPLETE ANSWER FROM CHAT GPT$,$ I WILL KNOW AND I WILL THUMBS DOWN AND CONTACT CHEGG. Jensen Machinery Company manufactures and sells or leases various types of farming equipment. On $1/1/23,$ Jensen leased a large

plowing system to O'Brien Farms. Data relating to the lease follow:

Cost of equipment to Jensen $$112,000$

Fair market value of equipment at $1/1/23$ $$142,500$

Useful life of equipment $8$ years

Lease term $5$ years

Residual value at the end of the lease

$($guaranteed by O'Brien$)$ $$18,000$

Residual value expected by O'Brien $$13,500$

Implicit and incremental interest rates $8\%$

Initial direct costs incurred by O'Brien in negotiation $$3,000$

Both the lessor and lessee use straight$-$line depreciation and have accounting periods that end on $12/31.$

Required:

a$.$ Calculate the yearly payment that Jensen will charge O'Brien under this lease agreement if payments are made on $1/1$ of each year,

beginning $1/1/23.$

b$.$ Construct the lease amortization table and prepare all journal entries that would be made by Jensen $($lessor$)$ during $2023$ and $2024$

relating to this lease.

c$.$ Construct the lease amortization table and prepare all journal entries that would be made by O'Brien $($lessee$)$ during $2023$ and $2024$

relating to this lease.

d$.$ Prepare the journal entries made by both Jensen and O'Brien with respect to the lease termination if the actual residual value

of the computer equipment is $$15,000.$