Exercise 21-22 a-b Blue Incorporated leases a piece of equipment to Larkspur Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,824 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 5 years, a fair value of $24,100, a book value of $19,100, and both parties expect a residual value of $8,200 at the end of the lease term, though this amount is not guaranteed. Blue set the lease payments with the intent of earning a 4% return, and Larkspur 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.) What is the amount of the rental payments used in the lease agreement? (Round answer to o decimal places, e.g. 5,275.) Rental payments SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the entries for Blue for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to o decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit