Flint Company leased equipment to Land Company for a $$ve$-$year period. Flint paid $$65,751$ for the equipment, which equals its current carrying value $($with estimated useful life of $$ve years$).$ The lease commenced on January $1$ of Year $1.$ Flint uses a target rate of return of $8\%$ in all lease contracts. The $$rst payment was received on January $1$ of Year $1,$ and Flint$$s accounting periods end on December $31.$ The equipment reverts to Flint at the end of the lease term, at which time Flint estimates that the equipment will have an unguaranteed residual value of $$2,800.$ Hint: Underlying asset$$s carrying value equals its fair value at lease commencement.

a$.$ Compute the annual payment calculated by the lessor.

$$ Note: Round answer to the nearest dollar.

$$ Note: Do not use a negative sign with your answer. b$.$ Prepare a schedule of the lease receivable for the lessor for the full lease term.

$$ Note: Round each amount in the schedule to the nearest c$.$ Provide journal entries for Year $1$ and Year $2$ for the lessor assuming that the equipment is held in the lessor$$s Inventory account.

$$ Note: Round your answers to the nearest whole dollar.whole dollar. Use the rounded amount for later calculations in the schedule. d$.$ Record the entry on December $31$ of Year $5$ for the return of the equipment assuming the equipment had a fair value of $$2,800.$