Homework 1 of Chapter 15. Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost of $222,664. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $80,000 on January 1 each year 3 years $222,664 8% 8% There is no expected residual value. Required: 1) Show how Hope determined the $80,000 annual lease payments. Fair Value $ 222.10604 - Present Values 2) Prepare appropriate journal entries for Hope for 2020 and 2021. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Date Cash Payments Effective Interest Revenue Decrease in Balance Outstanding Balance (lease receivable) 222. lolo 1/1/2020 1/1/2020 12/31/2020 12/31/2021 gross lease investment 80.000 80.000 80.000 3) Prepare appropriate journal entries for Python for 2020 and 2021. Assume straight-line depreciation and a December 31 year-end. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Date Cash Effective Decrease in Outstanding Payments Interest Balance Balance (lease expense payable) 1/1/2020 1/1/2020 12/31/2020 12/31/2021 minimum lease investment