Estimated fair value of the equipment at the end of the lease term $1,000 a. Determine the classification of the lease to LesseeX Corporation. Operating Lease Amortization schedule Journal Entries C. Provide all journal entries relating to the lease for Lesseex Corporation for 2020 and 2 Note: Round your answers to the nearest whole dollar. Date Account Name Dr. Cr. Jan. 1, 2020 0 x 0 X 0 OX To record asset and liability related to lease Jan. 1, 2020 x OX 0 0 To record lease payment Dec. 31, 2020 X OX 0 0 0 x To record interest Dec. 31, 2020 OX O x x O OX To record amortization Jan. 1, 2021 OX O 0 OX To record lease payment Dec. 31, 2021 OX 0 0 OX To record interest Dec. 31, 2021 0 O OX To record amortization Recording Entries for Finance Lease: Lessee Lessory Corporation, a manufacturer of equipment, enters into a lease of specialized equipment with Lesseex Corp. Title to the asset remains with Lessory Corp upon lease expiration. Lesseex Corp does not guarantee the residual value of the specialized equipment at the end of the lease term, and the lease contains no renewal or purchase options. The following information pertains to the lease. Lease term 5 years Economic life of the leased equipment Annual lease payments $2.745 Payment date Annually on January 1 Fair value of the leased equipment $13,000 Lessory Corp's carrying value of the leased equipment $11.250 Rate implicit in the lease known by lessee) 6.02% Estimated fair value of the equipment at the end of the lease term $1,000 a. Determine the classification of the lease to LesseeX Corporation. Operating Lease Amortization schedule Journal Entries b. Prepare an amortization schedule of the lease liability. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Note: Include any net rounding difference to Lease Liability in the interest on Liability amount for Jan. 1, 2024. Date Jan 1, 2020 Jan 1, 2020 S Jan 1, 2021 an. 1. 2022 an. 1, 2023 an. 1.2024 Total 5 Lease Interest Reduction of Payment on Liability Lease Liability Lease Liability $ 12,252 2.745$ 2,745 9,507 2,745 572 2,173 7,334 2.745 442 2.303 5,031 2.745 303 2,442 2.589 2.745 156 2.589 13.725 1,473 $ 12,252