Grouper Corporation leased equipment to Skysong, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $919 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 8 years, a fair value of $7,700, a book value of $5.700, and Grouper expects a residual value of $5,200 at the end of the lease term. Grouper set the lease payments with the intent of earning a 5% return, though Skysong is unaware of the rate implicit in the lease and has an incremental borrowing rate of 7%. 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) (a) Your answer is correct What is the amount of the rental payments used in the lease agreement? (Round answer to decimal places, eg 5,275.) Rental payments 99 (b) Prepare the entries for Grouper for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date Credit Debit Account Titles and Explanation (To record the recognition of the revenue) (To record depreciation expense on the leased equipment) (c) How would Grouper's accounting in part a change if it incurred legal fees of $900 to execute the lease documents and $300 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 decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit