"E21.18 (LO5) (Sale-Leaseback) Assume that on January 1, 2022, Humphrey's Restaurants NV sells a computer system to Liquidity Finance for information is as follows. 1. The computer was carried on Humphrey's books at a value of 6600,000 . 2. The term of the non-cancelable lease is 3 years; title will not transfer to Humphrey's, and the expected residual value at the end of the lease is C45O,000, all of which is unguaranteed. beginning of each year. 4. The incremental borrowing rate for Humphrey's is 8%. Humphrey's is aware that Liquidity Finance set the annual rental to ensure a rate of return of 8%. 5. The computer has a fair value of 6680,000 on January 1,2022 , and an estimated economic life of 10 years. Instructions Prepare the journal entries for both the lessee and the lessor for 2022 to reflect the sale and leaseback agreement. P10.5 (LO 4), E Taegu Ltd. manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31,2020 , and relevant budget data are as follows. Average operating assets for the year for the Home Division were w2,000,000,000 which was also the budgeted amount. Instructions a. Prepare a responsibility report (in millions of won) for the Home Division. b. Evaluate the manager's performance. Which items will likely be investigated by top management? c. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. 1. Variable cost of goods sold is decreased by 5%. 2. Average operating assets are decreased by 10%. 3. Sales are increased by 200,000,000, and this increase is expected to increase contribution margin by $=80,000,000