Ivanhoe Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: 1. The term of the noncancelable lease is 4 years, with no renewal option. Payments of $866,369 are due on July 1 of each year, 2. The fair value of the equipment on July 1,2021 is $3,140,000. The equipment has an economic life of 6 years with no salvage value. 3. Ivanhoe depreciates similar machinery it owns on the sum-of-the-years-digits basis. 4. The lessee pays all executory costs. 5. Ivanhoe's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 7% in computing the lease payments. Click here to view factor tables. Indicate the type of lease Ivanhoe Company has entered into and what accounting treatment is applicable. List of Accounts Attempts: 0 of 1 used (b) Prepare the journal entries on Ivanhoe's books that relate to the lease agreement for the following dates: (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5.250.) 1. July 1,2021. 2. December 31,2021. 3. July 1, 2022 . 4. December 31,2022 (To record amortization.) (To record interest payment.) Attempts: 0 of 1 used