Kingbird Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Blossom Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Blossom has the option to purchase the equipment for $26,000 upon termination of the lease. It is not reasonably certain that Blossom will exercise this option. 2. The equipment has a cost of $320,000 and fair value of $376,000 to Kingbird Leasing. The useful economic life is 2 years, with a residual value of $26,000. 3. Kingbird Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Kingbird Leasing is probable. Click here to view factor tables. 3te Account Titles and Explanation Debit Credit Lease Receivable 376000 Cost of Goods Sold Sales Revenue Inventory Cash Lease Receivable Interest Revenue Cash Lease Receivable Interest Revenue