Jestion 10 of 11 4.4175 Chapter 21 Homework Question 10 of 11 Current Attempt in Progress 4.41/5 : On January 1, 2020, Shamrock Co. leased a building to Pharoah Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $3,100,000 (unguaranteed). 2. The leased building has a cost of $3,600,000 and was purchased for cash on January 1, 2020. Prepare the journal entries that Pharoah should make in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 1/1/20 Right-of-Use Asset Lease Liability (To record the lease) Lease Liability Debit 2141843 285000 3. The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 1/1/20 4. Lease payments are $285,000 per year and are made at the beginning of the year. 5. 6. Pharoah has an incremental borrowing rate of 7%, and the rate implicit in the lease is unknown to Pharoah. Both the lessor and the lessee are on a calendar-year basis. 12/31/20 Cash (To record lease payment) Right-of-Use Asset Lease Liability Cash Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) eTextbook and Media List of Accounts Your answer is partially correct. Prepare the journal entries that Shamrock should make in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal in the Your answer is correct. 21