HAP Limited is a manufacturer of trucks. On 1 January 2020 it leases a truck to a lessee under a six-year non-cancellable lease agreement. The following data is relevant: 1. Six equal annual payments that are due on 1 January each year (with the first payment on 1 January 2020) provide HAP Limited with an 8% return on investment. 2. Titles to the truck do not pass to the lessee at the end of the lease. 3. The truck has an expected useful life of eight years. 4. On 1 January 2020, the fair value of the truck is $600,000, and the cost to HAP Limited is $540,000. 5. HAP Limited classifies the lease as a sales-type finance lease. Present value of an ordinary annuity of 1 for 6 years at 8% = 4.62288 Present value of an annuity due of 1 for 6 years at 8% = 4.99271 Required: a. Calculate the annual lease payment that HAP Limited would charge (round to the nearest dollar). b. Prepare the journal entries for HAP Limited on 1 January 2020. C. Calculate the interest income for HAP Limited in the year of 2020. HAP Limited is a manufacturer of trucks. On 1 January 2020 it leases a truck to a lessee under a six-year non-cancellable lease agreement. The following data is relevant: 1. Six equal annual payments that are due on 1 January each year (with the first payment on 1 January 2020) provide HAP Limited with an 8% return on investment. 2. Titles to the truck do not pass to the lessee at the end of the lease. 3. The truck has an expected useful life of eight years. 4. On 1 January 2020, the fair value of the truck is $600,000, and the cost to HAP Limited is $540,000. 5. HAP Limited classifies the lease as a sales-type finance lease. Present value of an ordinary annuity of 1 for 6 years at 8% = 4.62288 Present value of an annuity due of 1 for 6 years at 8% = 4.99271 Required: a. Calculate the annual lease payment that HAP Limited would charge (round to the nearest dollar). b. Prepare the journal entries for HAP Limited on 1 January 2020. C. Calculate the interest income for HAP Limited in the year of 2020