Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Sunland Company. The following information relates to this agreement 1. 2. 3 The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of years The fair value of the asset at January 1, 2020, is $75.000 The asset will revert to the lessor at the end of the lease term at which time the asset is expected to have a residual value of $8,000, none of which is guaranteed The agreement requires equat annual rental payments of $23,52248 to the lessor beginning on January 1, 2020 The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. Sunland uses the straight-line depreciation method for all equipment. 4. 5. 6. Click here to view factor tables. Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as 1/1/20 Right-of-Use Asset Lease Liability (To record the lease) 1/1/20 Lease Liability 23522.48 Cash 23522.48 (To record lease liability) 12/31/20 Lease Expense 23522.48 Right-of-Use Asset Lease Liability