Instructions Edom Company, the lessor, enters into a lease with Davis Company to louse equipment to Davis beginning January 1, 2019. The lease terms, provisions, and related events are as follows: 1. The lease form is 5 years. The lease is noncancelable and requires annual rontal receipts of $100,000 to be made in advance at the beginning of each year 2. The equipment costs $313,000. The equipment has an estimated He of 6 years and, at the end of the lease torm, has a residual value of $20,000 which is guaranteed by Davis Company (the lossee). 3. Davis agrees to pay all executory costs directly to a third party 4. The interest rate implicit in the lease is 14% 6. The initial direct costs are insignificant and assumed to be zero 6. It is probable that Edom will collect the lease payments. Required: 1. Next Level Assuming that the lease is a sales-type loase, calculate the selling price. 2. Prepare a table summarizing the lease receipts and interest income eamed by Edom. 3. Prepare journal entries for Edom for the years 2019 and 2020, Next Level Shaded cells have feedback. X d inni oll 1. Assuming that the lease is a sales-type lease, calculate the selling price. $100 Additional Instruction do lis Incorrect. Please try again. Points: 0/1 Feedback Check My Work When the residual value is ouaranteed by the lessee, the present value of this Yvoowwy w w w Opo rouOUT VOU ovom poor 2 Prenare a tahle enimmarizing the lasca ranainte and interact Inaam N Score: 0/33 1. Edom Company Summary of Lease Payments Received and Interest Income Earned Annual Lease Interest Income Date Payments at 14% on Lease Received Receivable 1 Lease Receivable $0.00 2 January 1, 2019 3 January 1, 2019 $0.00 0.00 4 December 31, 2019 $0.00 0.00 5 January 1, 2020 0.00 0.00 0.00 0.00 6 December 31, 2020 7 January 1, 2021 0.00 0.00 0.00 0.00 8 December 31, 2021 9 January 1, 2022 0.00 2 3 10 December 31, 2022 0.00 0.00 11 January 1, 2023 0.00 0.00 12 December 31, 2023 0.00 0.00