Exercise 116 (Part Level Submission) On January 1-2018. Morris Company sells land to Lopez Corporation for the land back. The following information relates to this transaction: ,150,900and immediately leases The term of the noncancelable lease is 21 years and the title transfers to Morris Company at the end of the lease d. The land has a cost basis of $6,719,700 to Morris The lease agreement calls for equal rental payments of $755,000 at the beginning of each year 4 The land has a fair value of $8,204,900 on January 1, 2018 The incremental borrowing rate of Morris Company is 11%. Morris is aware matuoez Corporation set the annual stat rentals to ensure a rate of return of 7%. Morris Company pays all executory costs which total $255,300 in 2018. Collectibility of the rentais is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor Prepare the journal entries for the entire year 2018 on the books of Morris Company to reflect the above sale and lease transactions. (Credit account titles are automaticaly indented when amount is entered. Do not indent manualy, Round answers to O decimal places e.g. S,275.) By accessing this Question Assistance, you will learn while you eam points based on the Point Potential Policy set by your instructor y(b) The parts of this question must be compieted in order. This part will be available when you complete the part above