Exercise 21A-20 a-c Martinez Corporation leased equipment to Tamarisk, Inc. on January 1, 2017. The lease agreement called for annual rental payments of $1,188 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $7,900, a book value of $5,900, and Martinez expects a residua value of $5,400 at the end of the lease term. Martinez set the lease payments with the intent of earning a 6% return, though Tamarisk is unaware of the rate implicit in the lease and has an incremental borrowing rate of 896. 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. (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 0 decimal places, e.g. 5,275.) Rental payments Prepare the entries for Martinez for 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275) 33117 To econd the recognition of the How would Martinez's accounting in part (a) change if it incurred legal fees of $500 to execute the lease documents and $400 in advertising expenses for the year in connection with the lease? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Anceust Titks and Explanati Over the cne e thie ye Click if you would like to Show Work for this question On Show Work