Gipho Corp. is a manufacturer of truck trailers. On January 1, 2021, Gipho Corp. leases ten (10) trailers to Lester Company under a six (6) year noncancelable lease agreement. The following information about the lease and the trailers is provided: Equal annual payments that are due on January 1 each year provide Gipho Corp. with an 8% return on net investment (present value factor for 6 periods at 8% is 4.99271). The annual lease payment is $120,175. Titles to the trailers pass to Lester at the end of the lease. The fair value of each trailer is $60,000. The cost of each trailer to Gipho Corp. is $54,000. Each trailer has an expected useful life of nine years. Collectability of the lease payments is probable and both companies have a December 31 fiscal year end. (a) What type of lease is this for the lessor? Answer (b) Prepare the journal entries for the Lessor for 2021 below. Round to the nearest dollar. Journal Entries - Lessor Jan 1, 2021 Dr. Dr. Cr. Cr. (To record the lease of 10 trailers) $ $540,000 $540,000 (b) Prepare the journal entries for the Lessor for 2021 below. Round to the nearest dollar. Jan 1, Journal Entries - Lessor Dr. 2021 Dr. Cr. Cr. (To record the lease of 10 trailers) Jan.1, Dr. Cash 2021 Dec 31, 2021 Cr. (To record the lease payment) Dr. Lease Receivable Cr. (To record lease interest for 2021) $540,000 $540,000