I need some help with part E! I have provided all the information from the problem. I will give a thumbs up for any help!! Thank you in advance!

Problem 21-06 (Part Level Submission) Whispering Leasing Company agrees to lease equipment to Metlock Corporation on January 1, 2020. The following information relates to the lease agreement. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. The cost of the machinery is $475,000, and the fair value of the asset on January 1, 2020, is $681,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Metlock estimates that the expected residual value at the end of the lease term will be 50,000. Metlock amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. 5. The collectibility of the lease payments probable. 6. Whispering desires a 9% rate of return on its investments. Metlock's incremental borrowing rate is 10%, and the lessor's implicit rate unknown. (Assume the accounting period ends on December 31.) Click here to view factor tables. (a) Your answer is correct. Discuss the nature of this lease for both the lessee and the lessor. This is a finance lease for Metlock. This is a sales-type lease for Whispering. SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used Collapse question part (b) Your answer correct. Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Annual rental payment 119,150 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (c) Your answer is correct. Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,972.) Present value of minimum lease payments 638,080 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset 638,080 638,080 Lease Liability (To record the lease.) Lease Liability 119,150 119,150 Cash (To record lease payment.) 12/31/20 Amortization Expense 91,154 91,154 Right-of-Use Asset - (To record amortization.) Interest Expense 51,893 51,893 Lease Liability (To record interest.) 1/1/21 Lease Liability 119,150 Cash 119,150 [12/31/21 Amortization Expense 91,154 91,154 Right-of-Use Asset (To record amortization.) Interest Expense 45,167) Lease Liability 45,167 (To record interest.) (e) Prepare the journal entries Whispering would make in 2020 and 2021 related to the lease arrangement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 (To record the lease.) 12/31/20 (To record lease payment.) 1/1/20 1/1/20 12/31/21 LINK TO TEXT LINK TO TEXT Problem 21-06 (Part Level Submission) Whispering Leasing Company agrees to lease equipment to Metlock Corporation on January 1, 2020. The following information relates to the lease agreement. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. The cost of the machinery is $475,000, and the fair value of the asset on January 1, 2020, is $681,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Metlock estimates that the expected residual value at the end of the lease term will be 50,000. Metlock amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. 5. The collectibility of the lease payments probable. 6. Whispering desires a 9% rate of return on its investments. Metlock's incremental borrowing rate is 10%, and the lessor's implicit rate unknown. (Assume the accounting period ends on December 31.) Click here to view factor tables. (a) Your answer is correct. Discuss the nature of this lease for both the lessee and the lessor. This is a finance lease for Metlock. This is a sales-type lease for Whispering. SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used Collapse question part (b) Your answer correct. Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Annual rental payment 119,150 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (c) Your answer is correct. Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,972.) Present value of minimum lease payments 638,080 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset 638,080 638,080 Lease Liability (To record the lease.) Lease Liability 119,150 119,150 Cash (To record lease payment.) 12/31/20 Amortization Expense 91,154 91,154 Right-of-Use Asset - (To record amortization.) Interest Expense 51,893 51,893 Lease Liability (To record interest.) 1/1/21 Lease Liability 119,150 Cash 119,150 [12/31/21 Amortization Expense 91,154 91,154 Right-of-Use Asset (To record amortization.) Interest Expense 45,167) Lease Liability 45,167 (To record interest.) (e) Prepare the journal entries Whispering would make in 2020 and 2021 related to the lease arrangement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 (To record the lease.) 12/31/20 (To record lease payment.) 1/1/20 1/1/20 12/31/21 LINK TO TEXT LINK TO TEXT